Notice Delayed, Coverage Denied: Claims-Made Policies Exempt From Notice-Prejudice Rule Codified In Utah Statute

A federal district court in Utah, applying Utah law, has determined that an insurer could deny coverage under a claims-made policy for untimely notice without proving prejudice. Geneva Rock Prods., Inc. v. QBE Ins. Corp., 2025 WL 1938772 (D. Utah July 15, 2025).

The insured had a claims-made Employment Practices Liability insurance policy for the policy period of August 21, 2017 to August 21, 2018, which required the insured to give notice of any claim as soon as practicable. The policy further mandated that the insurer could not assert that a claim was untimely without a showing of material prejudice, unless notice was provided more than 60 days after the expiration or termination of the policy period. In December 2017 and January 2018, two former employees of the insured filed Charges of Discrimination with the Equal Employment Opportunity Commission and Utah Antidiscrimination and Labor Division against the insured. The former employees ultimately filed lawsuits