Notice Under Workers’ Compensation Policy Does Not Equate To Notice Under Liability Policy
Wednesday, October 22nd, 2008Â In Sobara Constr. Corp. v. AIU Ins. Co. the Court of Appeals reiterated that failure to provide the requisite notice under an insurance contract relieves the insurer of its obligations under the contract.
In doing so, the Court emphasized that
notice provided under the worker’s compensation policy at the time of the incident did not constitute notice under the liability policy even though both policies were written by the same carrier.
Since “[e]ach policy imposes … a separate, contractual duty to provide notice,” the insured’s failure to notify its liability carrier until five and one-half years after the accident was deemed unreasonable as a matter of law.
