Your insurance policy most likely contains a clause that requires you to notify your insurer as soon you have notice of a claim or lawsuit. Trust me, it is there. Your insurance policy, particularly a liability insurance policy, requires you to cooperate with your insurer. Trust me, it is there too.
In essence, these clauses make sense and appear to be rather mundane tasks. Nothing earth shattering. However, if you do not comply, whether it be not providing your insurer timely notice or not cooperating, your insurer will argue that you forfeited your right to insurance coverage. Trust me, they will. They will argue that your inaction or action has prejudiced them. This will put the onus on you, the insured, to make it a question of fact to rebut the “prejudice” argument. Take these arguments off the table!
In a recent insurance coverage dispute, the insurer did exactly that–argued that the insured forfeited coverage by not timely notifying the insurer or cooperating with it. The insured was able to make the argument a question of fact, but most of the issue could have been taken off the table had the insured provided its insurer written notice of a lawsuit. The insured did not do that; it claimed it provided only oral notice.
Please contact David Adelstein at firstname.lastname@example.org or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.