Posts Categorized: Insurance

Posted: February 16, 2017

Broad Coverage Exclusion Does Not Render Insurance Policy “Illusory” Where Some Coverage Is Afforded

On February 14, 2017, the Court of Appeals issued a decision in Lend Lease (US) Construction LMB Inc. v. Zurich American Insurance Co., 2017 NY Slip Op. 01141, holding that a broad coverage exclusion in a builder’s risk insurance policy did not render the policy “illusory” because it did not “defeat all of the coverage… Read more »

Posted: February 9, 2017

Court of Appeals Accepts Certified Question on Interpretation of Reinsurance Contracts

On January 10, 2017, the Court of Appeals accepted a certified question from the Second Circuit in Global Reinsurance Corporation of America v. Century Indemnity Company, concerning the interpretation of reinsurance contracts. At issue is whether the amount specified in a “Reinsurance Accepted” clause of a reinsurance certificate is an absolute cap, applying both to… Read more »

Posted: December 24, 2016

Insurance Law § 3404 Does Not Bar Policy Condition That Insured Building Have Sprinklers

On December 9, 2016, Justice Oing of the New York County Commercial Division issued a decision in Illinois Union Insurance Co. v Grandview Palace Condominiums Association Corp., 2016 NY Slip Op. 32421(U), holding that an insurance policy condition requiring a building to have sprinklers did not violate Insurance Law § 3404. Insurance Law § 3404… Read more »

Posted: November 1, 2016

Additional Insured Endorsement Only Covered Parties That General Contractor Was Required By Written Contract to Name As Additional Insureds

On October 6, 2016, the First Department issued a decision in Three Boroughs, LLC v. Endurance America Specialty Insurance Co., 2016 NY Slip Op. 06554, holding that an additional insured endorsement in a general contractor’s liability policy only covered parties that the general contractor was required by written contract to name as additional insureds. The… Read more »

Posted: October 4, 2016

Additional Insured Clause Covers Only Those With Written Contracts Directly With Named Insured

On September 15, 2016, the First Department issued a decision in Gilbane Building Co./TDX Construction Corp. v. St. Paul Fire & Marine Insurance Co., 2016 NY Slip Op. 06052, holding that an “Additional Insured-By Written Contract” clause in a prime contractor’s commercial general liability policy did not cover a construction manager who had no written… Read more »

Posted: September 30, 2016

Plaintiff Fails to Show That it Was Additional Insured

On September 19, 2016, Justice Marks of the New York County Commercial Division issued a decision in Taunus Corp. v. Zurich American Insurance Co., 2016 NY Slip Op. 31747(U), holding that the plaintiff was not an additional insured under an insurance policy, explaining: An insurer’s duty to defend arises whenever the allegations within the four… Read more »

Posted: September 16, 2016

Late Notice Defense Not Waived as a Matter of Law by Failing to Include it in Disclaimer Letters

On September 15, 2016, the Court of Appeals issued a decision in Estee Lauder Inc. v. OneBeacon Insurance Group, LLC, 2016 NY Slip Op. 06012, holding that an insurer had not waived a late notice defense by not including it in its disclaimer letters, explaining: Analyzing the circumstances under the common-law waiver standard, which requires… Read more »

Posted: September 6, 2016

Where Loss From Environmental Damage Is Subject to Pro Rata Allocation, Insured Is Responsible For Periods When Insurance Was Unavailable

On September 1, 2016, the First Department issued a decision in Keyspan Gas East Corp. v. Munich Reinsurance America, Inc., 2016 NY Slip Op. 05945, holding that environmental losses allocable to time periods when no insurance was available in the marketplace is the responsibility of the insured. Keyspan is an insurance coverage action arising “environmental… Read more »