ADVERTISEMENT
ADVERTISEMENT
Brooklyn Building Owner Seeks Construction Injury Coverage
Law360 (January 7, 2021, 10:48 PM EST) The owner of a luxury Brooklyn apartment building sued Starr Indemnity and Liability Co. in New York state court, alleging Thursday that the insurer breached an insurance contract by not defending it in a construction injury suit under a $1.75 million policy.
Kent Avenue Property 3 LLC is asking the court to hold that Starr is obligated to defend and indemnify it in an underlying action alleging liability over a workplace accident that happened during the construction of the building.
In March 2013, a construction accident occurred when Erwin Herrera, a worker on the site, was allegedly struck by an excavator..
Federal Court in Georgia Applies
Hoover Rule Finding that Insurers Who Sent Denial Letters Waived Right to Assert Other Coverage Defenses Later.
Eight years ago in
Hoover v. Maxum Indemnity Co., 730 S.E.2d 413 (Ga. 2012), Georgia’s Supreme Court cautioned insurers against the common practice of denying coverage on one ground at the outset of a claim’s investigation, and later amending or supplementing that coverage denial to assert new coverage defenses if the initial reasons for denying coverage fail. Under
Hoover, when an insurer responds to a Georgia policyholder’s claim notification, it has three options: (1) confirm coverage for the claim; (2) defend the claim under a reservation of rights to deny coverage later after a claim investigation; or (3) deny the claim outright.