Insurance/General Liability

In AAA Sprinkler Corp. v. General Star National Insurance Co., 705 N.Y.S.2d 582 (1st Dept. April 20, 2000), we represented a primary general liability insurance carrier, which was sued by its insured for $9,000,000. The insured alleged that the primary underwriter breached its obligations to the insured by failing to put on notice the excess carrier of the underlying property damage claim, which had the potential to exceed primary policy limits. Both the trial and appellate court held that a primary general liability carrier does not have an obligation to notify the excess insurance carrier of a potential claim in excess of primary policy limits.