New York Clarifies Continuous Trigger Coverage Where Not All Years Are Covered by Policies

The New York Appellate Division recently ruled that insurers who are “on the risk” in extended environmental claims do not have to contribute to years when there was no coverage available in the marketplace for the insured to purchase.

In Keyspan Gas E. Corp. v. Century Indem Co. Index No. 604715/97 (1st Dept. Sept. 1, 2016), the court considered whether Century owed any indemnification to Keyspan for years when the insurance marketplace offered no pollution coverage.

The court, relying on the policy language and a prior Court of Appeals decision, determined that Century would only have to pay for the years when it was “on the risk.” In other words, Century would only have to indemnify Keyspan for the proportionate number of years it insured Keyspan in relation to the entire claim’s duration.

Click here to read our Case Alert for the details of this decision.



Sep 28, 2016
William S. Bennett

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