Sep 2, 2016

Directors and Officers Insurance—Some Pitfalls

Business Meeting

In recent instances, a number of boards that have come to us for representation have been chagrinned to discover that their insurance policies for directors and officers liability (“D&O”) did not fully cover claims by shareholders or unit owners. The result has been anxiety for board members, litigation expense for the building that would have been avoidable, and conflicts with the managing agent who had worked with a broker to place the insurance. It is important for board members and managing agents to understand the terms of D&O policies at the time they are purchased. All D&O insurance is not… Read more

Nov 7, 2012

Hurricane Sandy – Do you need a public adjuster?

Damaged Hardwood Flooring

If your building suffered significant damage as a result of Hurricane Sandy, the Board should consider whether to engage a qualified “Public Adjuster” to assist it in compiling and settling any resulting insurance claims, such as claims for property damage, lost business or damages arising from equipment breakdowns or failures. Any decision to utilize the services of a Public Adjuster should be made and acted upon as soon after the loss as possible. Public Adjusters represent insureds, and are to be distinguished from an adjuster hired by an insurance carrier, whose principal responsibility is to represent the carrier in dealing… Read more

Dec 2, 2008

Insurance:­ Prompt Notice of Claims

Water Damage

We have frequently reminded clients of the importance of promptly notifying their insurers of any actual, threatened or possible claims against them.  This has been especially important in New York because the New York Court of Appeals has held that an insurer may deny coverage due to late notification, regardless of whether the delay actually prejudiced the insurer.   During its 231st session, the New York State Legislature attempted to overrule this case law through legislation.   Under an amendment to Section 3420 of the New York Insurance Law, an insurer may now no longer deny a claim for untimely notice unless… Read more