A disclaimer communicates that the insurer denies an obligation under the policy. In several states, notably New York, a timely written disclaimer is a statutory prerequisite to asserting particular coverage defenses in liability claims.
Untimely disclaimer can forfeit the defense entirely regardless of its merit.
Alternative Names:
Coverage Disclaimer, Disclaimer Letter
Why it Matters?
Where disclaimer statutes apply, the timing requirement operates independently of whether the coverage position is correct, so delay can create coverage that never existed. The obligation attaches once the insurer has sufficient information to recognize the ground, not once it completes its investigation, which is a distinction insurers frequently misjudge. Calendaring the disclaimer deadline from first notice of the potential defense is the practical control.
Frequently Confused with
Related terms
Frequently asked questions
When must a disclaimer be issued?
What happens if disclaimer is untimely?
