Detailed search yields no insurance policy

When insurance companies face coverage disputes, the burden of proof can shift dramatically based on the quality of evidence presented. A recent New York Appellate Term decision demonstrates how a thorough, well-documented search for insurance records can effectively establish that no coverage existed, even when the initial claim seemed plausible.

This case highlights the importance of comprehensive record searches in New York no-fault insurance law disputes. Insurance companies must be prepared to provide detailed documentation of their search efforts, not just conclusory statements about coverage. The court’s acceptance of Hereford’s detailed affidavit shows that proper documentation can successfully shift the burden back to the plaintiff to prove their claim.

Jason Tenenbaum’s Analysis:

Compas Med., P.C. v Hereford Ins. Co., 2017 NY Slip Op 51083(U)(App. Term 2d Dept. 2017)

“In support of its cross motion and in opposition to plaintiff’s motion, defendant submitted an affidavit by its employee who described the details of a record search she had performed and stated that her search had revealed that there was no relevant Hereford Insurance Company policy in effect on the date of the accident in question. We find that defendant’s affidavit was sufficient to demonstrate, prima facie, that plaintiff’s claim did not arise out of a covered incident.”

My sense is that Hereford may have been the WC carrier? Or was this just a stab in the dark that Hereford was the no-fault carrier?

Key Takeaway

The specificity and detail of an insurance company’s search documentation matters significantly in coverage disputes. Unlike cases where defense arguments may be defeated by insufficient evidence, here the insurer’s comprehensive approach to documenting their record search created a strong prima facie case that no policy existed, effectively shifting the burden to the plaintiff to prove otherwise.