Construction Cos. Owed Coverage Despite Policyholder Error

Law360, New York (July 29, 2013, 2:35 PM EDT) -- An Illinois state appeals court on Friday ordered an insurer to cover two construction companies in a workplace injury suit, holding that coverage should not be automatically swiped from additional insureds when a named policyholder violates its duty to notify insurers about a claim.

A majority of Illinois appeals court justices turned down Mt. Hawley Insurance Co.'s argument that it should not cover Robinette Demolition Co. and Valenti Construction LLC because the insurer didn't receive notice until almost two years after the workplace injury. 

The decision...
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