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Insurance Coverage Blog

Commentary on Insurance Coverage Litigation in New York
Posted: December 13, 2018

Purchase Order Executed By Contractor Satisfies “Written Contract” Requirement of Additional Insured Endorsement

On December 4, 2018, Justice Lebovits of the New York County Supreme Court issued a decision in Chelsea Piers, L.P. v. Colony Ins. Co., Index No. 150402/2017, holding that a purchase order signed by a contractor triggered coverage for the property owner under the additional insured endorsement to the contractor’s CGL policy. The policy at issue in this case provided...

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Posted: December 12, 2018

Coverage Under Excess D&O Policy Barred By Warranty Statement

On December 6, 2018, the Second Circuit issued a decision in Patriarch Partners, LLC v. Axis Ins. Co., Case No. 17-3022, holding that a Warranty Statement executed in connection with the issuance of an Excess D&O policy barred coverage because the insured had knowledge prior to the issuance of the policy of “facts or circumstances that would reasonably be expected...

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Posted in D&O Policies
Posted: December 10, 2018

Exclusion for Claims “Arising Out Of” Radioactive Contamination Requires “Some Causal Relationship”, Not Proximate Causation

On November 26, 2018, Judge Feuerstein of the EDNY issued a decision in Merritt Environmental Consulting Corp. v. Great Divide Ins. Co., 17-CV-7495, holding that a policy exclusion for claims “arising out of” radioactive contamination did not require proximate causation, but rather “some causal relationship” between the contamination and the claim. In Merritt Environmental, an environmental consulting business sought coverage...

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Posted: December 7, 2018

Personal Injury Claim by Contractor’s Employee Excluded from Coverage under Property Owner’s CGL Policy

On December 4, 2018, the Second Circuit issued a decision in American Empire Surplus Ins. Lines v. Colony Ins. Co., Case No. 17‐3799, holding that a city agency’s CGL policy did not cover a claim for injuries sustained by employees of a contractor hired by the agency. American Empire arose from a personal injury lawsuit filed against the New York...

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Posted: November 27, 2018

Schlam Stone Announces the Launch of the Same-Day Justice Program

Schlam Stone & Dolan LLP is pleased to announce the launch of the Same-Day Justice Program, an arbitration service where participants can participate in an evidentiary hearing and receive a decision in their case that same day. The Same-Day Justice Program is designed to give parties with disputes in the $50,000-$500,000 range an efficient and affordable solution for resolution of...

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Posted: November 6, 2018

Additional Insured Loses Coverage Because of Late Notice of Claim

On November 1, 2018, the Third Department issued a decision in Lafarge Bldg. Materials Inc. v Harleysville Ins. Co. of N.Y., 2018 NY Slip Op 07385, holding that a property owner was not entitled to additional insured coverage under a contractor’s CGL policy because it gave late notice of the claim. The coverage dispute at issue in Lafarge arose from...

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Posted: October 18, 2018

No Additional Insured or “Insured Contract” Coverage under CGL Policy Where Injuries Not Proximately Caused by the Named Insured

On October 5, 2018, the Fourth Department issued a decision in Pioneer Cent. Sch. Dist. v. Preferred Mut. Ins. Co., 2018 NY Slip Op 06682, holding that a school district was not entitled to coverage under a cleaning company’s CGL policy – either as an additional insured or as the named insured’s contractual indemnitee – because the underlying injuries were...

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Posted: October 4, 2018

SEC Disgorgement Payment Not Covered Loss Under CGL Policy

On September 20, 2018, the First Department issued a decision in J.P. Morgan Sec., Inc. v. Vigilant Ins. Co., 2018 NY Slip Op 06146, holding that a disgorgement payment made as part of the settlement of an SEC enforcement action was a “penalty” and therefore did not qualify as a covered “loss” under a CGL policy. At issue in J.P....

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Posted in CGL Policies
Posted: September 28, 2018

Insurer Estopped from Asserting Coverage Defense Based on Unreasonable Delay in Disclaiming Coverage

On September 21, 2018, the Second Circuit issued a decision in SPARTA Ins. Co. v. Technology Ins. Co., Inc., Case No. 17‐3441, holding that a liability insurer that assumed the defense of a claim was estopped from disclaiming coverage based on a nine-month delay in asserting coverage defenses and resulting prejudice to the insured. In SPARTA Ins. Co., a subcontractor’s...

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Posted in CGL Policies
Posted: September 27, 2018

No Defense Coverage Under CGL Policy for Stop Work Order Issued by NYC Department of Buildings

On September 18, 2018, Justice Hagler of the New York County Supreme Court issued a decision in Aspen Specialty Ins. Co. v. Zurich Am. Ins. Co., 2018 NY Slip Op 32328(U), holding that property owners and their construction manager were not entitled to defense coverage under a CGL policy based on a stop work order issued by the New York City...

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