Late Notice of a Construction Accident: QBE v. Gangi and Today’s Prejudice Rule

Reviewed September 7, 2026.

In QBE Insurance Corp. v. D. Gangi Contracting Corp., 66 AD3d 593 (2009), the First Department upheld a late-notice disclaimer after a contractor waited roughly three years to report an accident. Its executive officer knew of the serious injury, and the asserted belief in nonliability did not excuse the delay.

Current law requires a separate analysis

For covered liability policies issued or delivered in New York, including renewals, on or after January 17, 2009, the statutory reforms introduced a prejudice requirement. Insurance Law § 3420(a)(5) and (c)(2) addresses that requirement, allocates the burden according to the delay and establishes an irrebuttable presumption in specified circumstances. Claims-made policies require particular attention.

The historical Gangi outcome should not be applied mechanically to every modern policy. Nor does the prejudice rule create permission to delay notice.

Report potentially covered incidents through the policy's required channels, keep proof of delivery, and promptly forward later demands and court papers. Identify all potentially applicable primary, excess and additional-insured coverage.

Kushnick Pallaci PLLC assists clients throughout New York with insurance notice and coverage disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

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