Legal Question in Insurance Law in Pennsylvania

Is My Business Liability Insurance Company Likely To Defend?

I have been running an incorporated restaurant (w/ bar area) for the better part of 25 years. Quite some time ago, an incident took place wherein an individual (a past patron) entered my establishment with a knife and inflicted significant (but not life-threatening) wounds upon a woman present--the woman with whom he was 'involved' at the time (ironically, a relationship which apparently remains intact from what I hear-presumably thru plate-glass). So, I rushed to the restaurant, and the police & ambulance had also arrived. After hearing the involved parties were each respectively in stable conditions, I did not take the intiative to contact my insurer about it--yes, a rather unintelligent move, I know (at the least). Anyway, then came the woman's lawsuit which I forwarded to my long-time insurance company with whom I have an excellent record. My policy requires 'timely notification' of such incidents to the company & they intially instilled ample fear by telling me my delay in notifying would -likely- mean they would not defend the suit. BUT, they have since attained all needed information, and have thus far been defending the suit [talking settlement?] for a while. How worried should I be that co. might still back out? Thanks


Asked on 6/21/04, 12:04 pm

2 Answers from Attorneys
Andrew Solomon Law Office of Andrew A. Solomon

Re: Is My Business Liability Insurance Company Likely To Defend?

So long as the insurance company has not been prejudiced by your delay in reporting this incident, you shouldn't have to much to worry about. I would still consult an attorney to touch base with the insurance company's lawyer to determine their position. Further, unless you or your employees did something wrong (serving the stabber while intoxicated, or failing to protect a patron from a danger you knew about) you probably have no liability to the victim.

Read more
Answered on 6/21/04, 2:16 pm
Richard Teitell Richard K. Teitell, Esquire, P.C.

Re: Is My Business Liability Insurance Company Likely To Defend?

The insurance company would have to advise you in writing that it is defending you an a "reservation of rights" basis, which means that it reserves it's right to deny providing coverage for any amounts you may owe, even though it defended you. If you have not received that response, you should be OK. Also, if the case is in suit and the insurer has appointed an attorney for you, that attorney is ethically bound to be your attorney and look out for your interests, not the ins co interests. You can discuss this with the attorney under the attorney-client confidentiality concept.

Read more
Answered on 6/21/04, 2:56 pm


Related Questions & Answers

More Insurance Law questions and answers in Pennsylvania