{"id":905174,"date":"2025-12-18T14:33:33","date_gmt":"2025-12-18T21:33:33","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=905174"},"modified":"2025-12-18T14:33:36","modified_gmt":"2025-12-18T21:33:36","slug":"late-notice-doesnt-always-mean-no-coverage","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/late-notice-doesnt-always-mean-no-coverage\/","title":{"rendered":"Late Notice Doesn\u2019t Always Mean No Coverage\u2014But Only If You Can Prove It"},"content":{"rendered":"\n

Amanda S. Keller | It Pays to Be Covered<\/a><\/p>\n\n\n\n

The Eleventh Circuit\u2019s recent decision in\u00a0L. Squared Industries, Inc. v. Nautilus Insurance Co.<\/em>\u00a0offers important guidance for policyholders navigating notice provisions<\/a> under claims-made insurance policies\u2014particularly when a policy imposes both a policy-period notice requirement and a separate \u201cprompt notice\u201d clause.<\/p>\n\n\n\n

Background<\/strong><\/h4>\n\n\n\n

L. Squared Industries owned and operated gas stations in Florida and purchased a storage-tank liability policy from Nautilus Insurance Co., effective July 18, 2018 to July 18, 2019. The policy was written on a claims-made-and-reported basis and required that pollution conditions be reported in writing within the policy period or any extended reporting period. It also included a second, stricter provision requiring Nautilus to be notified within seven days after the insured first became aware of a pollution condition.<\/p>\n\n\n\n

In August 2018, L. Squared received an environmental report identifying groundwater contamination. However, it did not notify Nautilus until April 2019\u2014eight months later but still within the overall policy period. Nautilus denied coverage, citing the policy\u2019s strict seven-day notice requirement.<\/p>\n\n\n\n

The Court\u2019s Analysis<\/strong><\/h4>\n\n\n\n

The Eleventh Circuit affirmed summary judgment for Nautilus but clarified how notice provisions operate in claims-made policies. The court explained that the essence of a claims-made policy is timely notice to the insurer within the policy period. It distinguished between two types of notice clauses:<\/p>\n\n\n\n