In Greater New York Mut. Ins. Co. v. Utica First Ins. Co., 172 A.D.3d 588, 102 N.Y.S.3d 175 (2019), Farber Brocks & Zane, LLP successfully represented its insurance carrier client in a case concerning a breach of the cooperation clause in an insurance policy. The case arose from a fire that caused significant property damage to a commercial building, with the insured contractor allegedly responsible for the incident.
The court ruled in favor of Utica First, holding that the insured contractor’s employees had made false statements to the insurer’s investigators regarding the use of a torch on the roof, which was central to the cause of the fire. The employees falsely claimed that they had not used a torch during their work, despite evidence to the contrary. The court found that these misstatements breached the cooperation clause of the insurance policy, which requires the insured to provide truthful and fair disclosures when reporting an accident.
As a result of this breach, the court relieved Utica First of its duty to indemnify the insured for the fire damage, emphasizing the critical importance of cooperation and truthful reporting in insurance claims. This decision underscores the significance of the cooperation clause in liability insurance policies and the potential consequences of failing to provide honest and accurate statements during an investigation.
This ruling highlights Farber Brocks & Zane’s proficiency in defending insurance carriers in complex coverage disputes, ensuring that our clients’ interests are protected when dealing with policy violations and breaches of contractual duties.