New York Insurance Coverage and Surety Litigation Attorneys
The lawyers at Muchmore & Associates PLLC are experienced in litigating insurance coverage disputes under general liability, property and casualty, and workers compensation insurance contracts, and litigation over premium calculations. The firm's attorneys also litigate claims against sureties in relation to performance bonds, payment bonds, and mechanic's lien discharge bonds.
New York is an insurer-friendly jurisdiction and does not recognize an independent cause of action for bad faith denials of coverage. As a result, insurance companies often disclaim coverage until a law firm is retained to litigate a claim against the policy. Insurance companies in New York often disclaim coverage on the basis of late notice of an insurance claim, although New York Insurance Law § 3420 requires insurance companies to demonstrate prejudice in order to disclaim coverage. Insurance carriers have a broad duty to defend their insureds from lawsuits, even when the claim lacks merit, and no liability exists to the claimant.
Broad Insurance Coverage and Surety Experience
Our firm's lawyers are experienced in prosecuting claims for insurance coverage and claims against surety bonds in the New York courts. Where coverage exists, we can draft a notice of claim and demand for defense and indemnification to the insurance carrier. If the insurer disclaims coverage, we can commence a declaratory judgment action to require the insurer to provide defense and indemnification, and we can defend you from the underlying claim in the interim. The firm's lawyers are particularly experienced with insurance and surety disputes involving the construction industry. We prosecute claims against sureties under payment bonds, performance bonds, and mechanic's lien discharge bonds, and defend such claims on behalf of sureties and contractors serving as principals. We are also familiar with the issues that lead insurers to disclaim coverage, such as action-over exclusions and common endorsements. We can review your policy to ensure such exclusions will not result in a disclaimer of coverage.
Contact Us to Schedule a Free Initial Consultation
Contact us at (917) 932-0299 to schedule a free initial consultation if you are involved in an insurance or surety dispute, including the following:
General Liability: Most lawsuits commenced against property owners and contractors are covered by general liability insurance policies. However, insurers often disclaim coverage based on late notice of claim and exclusions in the insurance policy. In such cases, our attorneys can commence declaratory judgment actions to resolve insurance coverage issues and compel defense and indemnification under the insurance policy. While the dispute over insurance coverage is pending, we can defend you from the underlying claim and assert claims against other parties that may be liable.
Payment Bonds: New York State Finance Law § 137 requires general contractors on most public works projects to purchase payment bonds. A payment bond ensures payment to those who provide labor and materials on construction projects. The principal and surety under a payment bond are liable to any party that does not receive payment. Lower tiered subcontractors and suppliers must provide the general contractor written notice of their claims within 120 days after the labor or materials were furnished. Our attorneys are experienced in making payment bond claims, advising sureties on liability under payment bonds, and defending principals and sureties from claims under payments bonds.
Performance Bond Claims: A performance bond guarantees the performance of a party under a contract. Typically, performance bonds are taken out by general contractors on large construction contracts to assure the owner that, if they fail to perform, there will be a deep pocket to collect from. Obtaining a performance bond from a surety requires years of experience and a track record of completing construction contracts without incident. The possession of a bonding line makes general contractors eligible to bid on larger projects and signals to property owners that they are experienced and capable. Our firm's attorneys have extensive experience defending general contractors and sureties in relation to performance bonds, minimizing liability, and safeguarding the relationship between surety and contractor.
Mechanic's Lien Discharge Bonds: If a contractor has a bonding line with a surety, the easiest way to discharge a mechanic's lien is by filing a mechanic's lien discharge bond with the county clerk pursuant to New York Lien Law 19(4). The bond binds the principal and surety for any sum found to be due in a lien foreclosure action and replaces the real property as collateral for the lien claim. Our attorneys have extensive experience asserting claims against mechanic's lien discharge bonds and defending principals and sureties under such bonds.
Workers Compensation: When workers are injured in the course of their employment, they are generally compensated through the New York State Workers Compensation Board and cannot directly sue their employers. However, they may still sue property owners and other parties through an “action over”. Those parties in turn assert claims for indemnification against the employer, whose insurance policies often exclude “action over” coverage. When employers misclassify employees or fail to obtain workers compensation coverage, they can also be liable for substantial penalties under the New York Workers Compensation Law. Our attorneys have successfully defended worker injury claims in court and before the New York Workers Compensation Board. We have also successfully litigated premium disputes with the New York State Insurance Fund and private insurers.