In Coverage Dispute, No Slack For An Honest Mistake

When The Saint Consulting Group was sued by a client, it sent notice of the claim to its insurance agent, the Eastern Insurance Group. The agent promptly informed the consulting company’s comprehensive general liability carrier. But the claim fell under another policy from another carrier, The Hartford. The agent informed The Hartford, but not until seven months had passed, and Hartford denied coverage on the grounds that too much time had elapsed. A Massachusetts Superior Court judge sided with the carrier, saying the court is obligated to construe the entire policy “without rendering any of its language superfluous.” The takeaway, writes Burns & Levinson attorney Shep Davidson, is simple.