Know Your Business And The Impact of Actual Notice on Additional Insureds in Illinois

(879 Ratings)

Produced on: May 19, 2017

Course Format On Demand Audio

Taught by

Categories:

Course Description

Time 61 minutes
Difficulty Intermediate

This course, taught by Andrew Witik, a partner in the Insurance practice at Tressler LLP, will cover the topic and application of the rule of “actual notice” under Illinois law and the significant impact it can have on additional insureds and their businesses.

Illinois follows the minority rule and does not always require an additional insured to tender a lawsuit for which it desires a defense. Under certain circumstances, the named insured’s insurance carrier may become aware or learn that an additional insured endorsed on its named insured’s liability policy has been sued in the same lawsuit as the named insured. The result of having actual notice of the lawsuit against the additional insured is that the insurer’s duty to defend is triggered. Once this occurs, under the rule of actual notice, the insurer has an affirmative duty to contact the additional insured to determine whether the additional insured wants the insurer to defend or participate in its defense.

The insurer’s knowledge of these facts, and that the allegations in the plaintiff’s complaint potentially fall within the scope of coverage under its policy, can have a profound impact on how litigation expenses and costs are paid, so businesses and their counsel must be vigilant.

Both general counsel and in-house coverage counsel must ensure that the insurer has performed a simple review and comparison of the allegations in the plaintiff’s complaint and terms of the named insured’s liability policy, so as not to be caught unawares of its obligations. In the current climate of rising litigation costs, the defense provided to the additional insured can result in significant savings of expenses that the additional insured business can pass on to an insurer other than its own and avoid a detrimental effect on its future premiums. In addition to these considerations, this course will also explore how the doctrine of estoppel may come into play against an insurer that ignores the fact that it has actual notice of a lawsuit filed against an additional insured on its policy of insurance.

Learning Objectives: 

  1. Understand the Illinois rule on actual notice and additional insureds
  2. Identify the steps general counsel must take to ensure their insurance carrier is aware of any additional insureds and its defense obligations
  3. Assess the cost-saving implications of the rule and its impact on business decisions 

Faculty

Andrew Witik

Litchfield Cavo

Andrew has over 29 years of experience representing insurance companies, corporations, municipalities, and individuals in declaratory judgment actions, contractual disputes, bad faith claims, and appeals in state and federal courts across the United States. In addition to insurance coverage, his emphasis is on construction defect litigation matters. He has successfully litigated Illinois cases of first impression applying the business risk and false pretense exclusions. He also has experience with general liability, professional liability, commercial auto, property, business owner’s, and homeowner’s policies.

Drew has been rated an AV® Preeminent™ lawyer by Martindale-Hubbell, representing the recognition of the highest level of professional excellence by his peers. In 2018, he was named a Leading Lawyer in Illinois in the areas of Insurance, Insurance Coverage, and Reinsurance Law.

After law school, Drew served as law clerk to the Hon. Edward J. Egan of the Illinois Appellate Court.

Education

  • Loyola University Chicago School of Law, JD
  • Loyola University, BA

Admissions

  • Illinois
  • Wisconsin
  • United States District Courts: Central District of Illinois, Northern District of Illinois, Southern District of Illinois, Eastern District of Wisconsin
  • United States Court of Appeals: Seventh Circuit

Publications and Presentations

  • “Know Your Business And The Impact of Actual Notice on Additional Insureds in Illinois,” Lawline Webinar, May 19, 2017
  • “Additional Insureds and Risk Transfer in Construction Contracts,” Lawline Webinar, March 27, 2017
  • “Arising Issues with Additional Insureds,” 3rd Annual Intermountain Construction Defect & Dispute Conference, Salt Lake City, Utah, February 3, 2017
  • “Business Owner’s Policies and Transferring Risk” NBI Webcast Seminar, September 14, 2016
  • “Arising Issues Regarding Additional Insureds, Risk Transfer in Construction Contracts and Anti-Indemnity Legislation,” 2nd Annual Midwest Construction Defect & Dispute Conference, Minneapolis, Minnesota, August 18, 2016
  • “The Texas Anti-Indemnity Act,” Premier Southwest Construction Defect & Dispute Conference, Las Vegas, Nevada, April 15, 2016
  • “Emerging Issues: High-risk Insurance Coverage Litigation for Lawyers in 2015,” The Knowledge Group Webcast Seminar, October 8, 2015

Reviews

CF
Catherine F.

Excellent content

HM
holly m.

Very good presentation in clear understandable terms. The speaker has a nice conversational manner.

RM
Robert M.

Well done presentation.

TH
Tom H.

Very well done.

LF
Lawrence R. F.

good lecture

FM
Frances M.

I learned a tremendous amount. Excellent presentation.

GD
Gerardo D.

Informative

GD
Gary D.

The cases in the outline were helpful in following the lecture.

JB
James B.

Brought home key points in coverage issues regarding additional insureds.

DW
Donna W.

I rarely encounter insurance matters, but the speaker really was informative and clear.

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$ 59 Insurance Law and Business, Corporate, & Securities Law In Stock

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