Late notice under claims-made policy dooms insureds added to complaint

Insurance Matters

By Don R. Sampen

Don R. Sampen is a member of the appellate practice group of Clausen, Miller P.C., where he focuses on appellate, commercial and insurance-related litigation. He also teaches insurance law at Loyola University Chicago School of Law. His column appears twice monthly.

Posted December 20, 2022 11:56 AM

Updated December 20, 2022 2:50 PM

The 7th U.S. Circuit Court of Appeals, construing Illinois law, recently held that insureds under a claims-made policy had an obligation to give notice to their insurer during the policy period in which a related insured entity was sued.Hence, when the insureds waited to give notice until after the complaint was amended to add them as defendants, the notice was late and the insureds were not entitled to coverage. Hanover Insurance Co. v. R.W. Dunteman Co., 51 F.4th 779 (Oct. 24).The insurer, Hanover, was represented by …

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