Sierra v. 4401 Sunset Park, LLC

The owner and managing agent of an apartment building (collectively, the insureds) were insureds under two different policies: they were named insureds under their own policy and additional insureds under a policy obtained by a contractor they hired. When an employee of the contractor was injured, the contractor’s insurer, seeking to disclaim liability, sent written notice to the insureds’ own carrier but not to the insureds themselves. The insureds brought third party claims against the contractor and the contractor’s insurer, asserting that the contractor’s insurer was required to provide them with a defense and indemnification. Supreme Court granted summary judgment against the contractor’s insurer. The Appellate Division affirmed, concluding that the contractor’s insurer had failed to comply with N.Y. Ins. Law 3420(d)(2) because it had not sent its disclaimer notice to its additional insureds. The Court of Appeals affirmed, holding that the contractor’s insurer failed to comply with section 3430(d)(2) under the circumstances of this case. View "Sierra v. 4401 Sunset Park, LLC" on Justia Law