The New York Court of Appeals recently issued two important decisions on insurance coverage that significantly affect construction claims. 

In a July 2006 case, BP A.C. Corp. v. One Beacon, the Appellate Division, First Department, held that an additional insured under a commercial general liability policy was entitled to a defense in a personal injury suit.  This defense was permitted because the additional insured was entitled to the same protection as the named insured.  The duty to defend was not contingent on an adjudication of liability.

In a June 2006 case, the New York Court of Appeals reaffirmed earlier decisions that an insurer must disclaim liability “as soon as reasonably possible” within the meaning of Insurance Law 3420(d).  The disclaimer may be required within 30 days of notice of claim absent a reasonable explanation for the delay.

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