Handelsman v. Sea Insurance Company, Ltd

In Handelsman et al v. Sea Insurance Company, Ltd., 85 NY2d 96 [1994], the Court held that when a liability insurer is notified of a claim, it must timely disclaim coverage in order to avoid its duty to defend and indemnify Insurance Law 3420(d). A timely disclaimer is not required, however, when the policy on which the claim rests does not, by its terms, cover the incident giving rise to liability.