Publications

Repudiation vs. Ordinary Breach: Insured's Policy Duties

July 2, 2007
New York Law Journal

Must an insured party comply with its duties under an insurance contract even where an insurer has refused payment on a claim in breach of the contract?
In certain circumstances, the answer is yes, the insured must perform its duties in order to avoid prejudicing its right to a full recovery. According to a recent decision in the First Department, whether the insured has a continuing obligation depends on whether the insurer has repudiated or merely breached the contract. However, because it will not always be clear whether a carrier’s breach constitutes a repudiation, the cautious insured may choose to continue to comply with its duties.