It is well known that insurance policies universally impose a requirement that a “claim” be timely submitted. Unfortunately, this basic coverage condition is so well known that policyholders often overlook what exactly constitutes a “claim” under their insurance policy. A decision rendered by the United States District Court for the Southern District of New York earlier this year is a reminder that policyholders must carefully read their insurance policies to understand exactly what constitutes a “claim” to avoid forfeiting coverage simply because of a misunderstanding of whether a claim as defined by the policy is a “claim.”

In Pine Management, Inc. v. Colony Insurance Company,1 the parties disputed whether a July 17, 2018, letter (the “Letter”) received by the insured, Pine Management, Inc. (“Pine”), constituted a “claim” under a claims-made and reported policy with a policy period of August 1, 2018, to December 1, 2019. The insurer, Colony Insurance Company (“Colony”), argued the Letter was a “claim” first made against Pine before the policy incepted to avoid providing coverage for a related lawsuit filed against Pine on July 26, 2019.