California State Court: Claim Made In One Period And Reported In A Subsequent Period Not Covered By “Claims Made And Reported” Policy

The California State Court of Appeals recently reaffirmed that, under California law, claims made in one policy period and reported in a subsequent policy period are not covered under either of consecutive “claims made and reported” policies when both policies require that a claim be made and reported during the same policy period.  Westrec Marina Management, Inc., v. Arrowood Indemnity Company No B195047 (June 16, 2008).  The decisions sends again a clear warning to insureds that notice of a claim must be promptly made in order to avoid potential coverage issues.

For a full copy of the decision, please click here.

For our post addressing other aspects of the decision, please click here.