QUESTION
Which insurance carrier should defend me: the carrier I had at the time the formation of the contract or the carrier I had at the time of the breach
Asked on Jun 16th, 2015 on Business Litigation - California
More details to this question:
My company just got served with a complaint for breach of contract/warranty in CA. I had different insurance carrier at the time of the formation of the contract (when we signed) and at the time it was allegedly breached. I am not sure which insurance company I should deal with to defend me and I only have 30 days to answer so I do not want to waste my time to sending it to the wrong carrier. Which date is relevant? The time of the formation or the time of the breach for insurance defense purposes? Or both? Should I send it to both carriers? Thank you in advance.
1 ANSWER
Or it could be the carrier you had at the time the claim was asserted. It depends on the language of each of the policies. For example, a policy can cover claims made during the coverage period, or claims which accrue during the coverage period. Depending on the language of the policy, there may be coverage under both policies, or neither. The practical answer is always the same, however - SEND THE COMPLAINT TO ALL CARRIERS AND MAKE A CLAIM UNDER ALL POSSIBLE POLICIES.
Answered on Jun 17th, 2015 at 8:34 AM