Section 10.22 Duties of the Insured

• Library: Insurance Practice 2015

The commercial general liability policy, as do most insurance policies, contains language requiring the insured to give the insurance company notification as soon as practicable of an occurrence or an offense that may result in a claim. Similarly, almost all policies require the insured to notify the insurer immediately when the insured has been sued.

The purposes of notifying the insurer of a potential claim are to allow the insurer to determine its rights and liabilities and to investigate the claim to prevent a fraud on the insurance company. Kaplan v. Guardian Life Ins. Co. of Am., 231 F. Supp. 874 (W.D. Mo. 1964).

When a policy requires “immediate” notice, the law will not require the insured to notify the insurer until the facts of the injury and its progress suggest the possibility of liability on the part of the insured for damages. Montgomery v. Travelers Protective Ass’n of Am., 434 S.W.2d 17 (Mo. App. S.D. 1968). See alsoSt. Paul & Kansas City Short Line R.R. v. United States Fid. & Guar. Co., 105 S.W.2d 14 (Mo. App. W.D. 1937).

If it is impossible for the insured to give notice to the insurer, the law may allow the insured to give notice to the insurer within a reasonable time after it becomes possible to give notice to the insurer. Montgomery, 434 S.W.2d 17. In Powell v. Home Indemnity Co., 343 F.2d 856 (8^th Cir. 1965), the defendant did not know coverage existed for...