Judge: Designer’s One-Sentence Claim Notice Allows Insurer to Deny Coverage
The University of Pittsburgh attempted to force Lexington Insurance Co. to cover millions in damages stemming from the delayed completion of a building addition on campus. However, federal Judge Katherine Forrest argued that the project design firm's warning of potential trouble with the building was too vague to qualify as an official insurance claim, according to the article.
Rubinstein is quoted in the article explaining the ruling.
Legally, any ambiguity in coverage is typically interpreted against the insurance company in favor of the insured. But if you fail to follow the guidelines for filing a claim and given the information the insurance company is seeking, you effectively give the insurance company an out, Rubinstein said.
“The key to dealing with the carriers is that you need to be responsive,” he said.