Coverage Question Series – Part 36
Post on January 4th, 2019
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1s (effective for all policies new or renewed as of May 1, 2018). Refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided here.
I have not received a demand for money but I did receive a request to sign a tolling agreement, am I covered?
Yes. As soon as you receive the request for you to sign the tolling agreement on the potential claims against you, your policy requires you to provide written notice of such as soon as practicable. Quite straightforward.
But, while we have your attention, we would like to see the tolling agreement before you sign. We prefer agreements with a date certain, that clearly indicates to all parties the last date upon which litigation could be filed. Adding 90 days in the middle is more complicated than an end date of March 4, 2019.
Also, be mindful you are not waiving the statute of limitations defense in the tolling agreement. With the discovery rule and case law defining when the statute of limitations runs, you do not want that tolling agreement to revive claims that neither party realized were already out of time.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Carl Marsh, Esq.