Builder Waited Too Long To Inform Insurer Of Suit: 7th Circ.

Law360 (August 15, 2019, 7:59 PM EDT) -- The Seventh Circuit ruled that an Illinois construction company is on the hook for any costs above $1 million arising from a 2008 automobile accident and a subsequent lawsuit because the company waited too long to notify its excess insurer.

While the language of Deerfield Construction Inc.'s excess insurance policy with Landmark American Insurance Co. was open-ended — requiring "prompt notice" without providing a specific time frame — the appellate court said Tuesday that it was difficult to believe the Illinois Supreme Court would regard notice given seven years after an accident as "anywhere close to being either 'prompt' or 'as soon as...

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