In New Jersey, the failure to satisfy the notice requirements of a policy will only defeat coverage where there has been a showing of appreciable prejudice. Cooper v. Government Employees Ins. Co., 51 N.J. 86 (1968). The phrase “as soon as practicable” has been construed to mean “within a reasonable time,” which depends on the facts and circumstances of the case. Peskin v. Liberty Mut. Ins. Co., 214 N.J. Super 686 (Law Div. 1986) aff’d in part and remanded by 219 N.J. Super. 479 (App. Div. 1987).
So, even if you have breached the notice provisions of your insurance policy, your insurance carrier must still demonstrate appreciable prejudice. The determination of whether appreciable prejudice exists requires examination into whether substantial rights have been irretrievably lost and the likelihood that the insurer would be successful in defending against the claim asserted against its insured. Baen v. Farmers Mut. Fire Ins. Co. of Salem Cnty., 318 N.J. Super. 260 (App. Div. 1999). Often, such prejudice just does not exist and you are entitled to coverage. Don’t let your insurance carrier tell you otherwise without consulting Verp & Leddy.
