Brill & Associates, P.C. recently secured AI coverage for its client following the New York Court of Appeal’s decision in Sierra v. 4401 Sunset Park, LLC.   Following receipt of Plaintiff’s Complaint in a NYS Labor Law case, the insurer for our clients, the building owner and manager, tendered to the employer’s insurer pursuant to a contractual obligation to obtain additional insured coverage. The employer’s insurer disclaimed coverage based upon ‘late notice’ but sent the disclaimer only to the tendering insurer and not the additional insureds or their attorney. The Court of Appeals ruled that that the disclaimer was ineffective to the Additional Insureds under Section 3420(d) of the Insurance Law which requires a disclaiming insurer to provide notice of its disclaimer to any insured and their counsel. The high court rejected the disclaiming insurer’s argument that the insurance companies were the ‘real parties in interest’  and refused to find an insurer to be the agent of its insured to satisfy the requirements of Insurance Law 3420(d), as opposed to counsel who owe a fiduciary obligation to their clients under all circumstances.  As such, the disclaimer was ruled ineffective against our clients and they received additional insured coverage. Copies of the decision are available at the Court of Appeals website or though our office.