Whether the issue arises in an insurance coverage case for personal injury or in a legal malpractice coverage case, notice to the carrier is all important, and the failure to notify can gut coverage.  Cohen Bros. Realty Corp. v RLI Ins. Co.  2016 NY Slip Op 31493(U)  August 3, 2016 Supreme Court, New York County Docket Number: 652037/2011  Judge: Robert D. Kalish is an example that has implications for legal malpractice litigation.

“In the underlying aetion, the PlaintiffCohen Brothers Realty Corp. (“Cohen Brothers”) alleges in sum and substance that they are ·entitled to coverage under an insurance policy from the Defendant RLI Insurance Company (“RLI”). The Plaintiff alleges in sum and substance that it is the exclusive  ‘ managing agent for the property located at 622 Third Avenue, and that on October·3, 2008, David Vasquez was injured (and subsequently died) while working at said location. The Plaintiff alleges that at the time of the incident the Plaintiff had a general liability policy (the “Policy”) issued by RLI….”

“Where a policy of insurance requires that the insured give the insurer notice ‘as soon as practicable;’ notice must be afforded within a ‘reasonable time under the circumstances’. The notice requirement is a condition precedent to coverage and so, failure to provide such notice·vitiates the contract of insurance .”

“In Tesler v Paramount Ins Co (220 AD2d 334 (NY App Div 1st Dept 1995)), the First
Department held that an insured party demonstrated a good-faith reasonable belief in their nonliability, where said belief was based upon t.he specific incorrect advise of their insurance agent…”