New Jersey’s state Supreme Court recently ruled that an insurance company was not responsible for a settlement after the insurer denied coverage over late notice disclaimers.
The case involved a Directors and Officers claims made policy, a policy type that is triggered when a claim is made against an organization.
Specifically, the state’s high court upheld a lower ruling that an insurer is not required to establish prejudice resulting from the delayed notice of the claim.
The claims made policy required the policyholder to notify the insurer of a claim within the policy period and “as soon as practicable.” The insurance company denied coverage saying that notice was not given as soon a practicable.
Courts in New Jersey will likely continue to resolve disputes over late notice disclaimers, but the precedent is worth monitoring for insured firms.
Read more about this specific case at JD Supra Business Advisor.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.