Harvard Lawsuit Against Zurich and Reporting Lessons

This document is a guide that discusses the legal case involving Harvard University and Zurich American Insurance Company, focusing on the implications of timely reporting in insurance claims. The case arose after Harvard sought additional coverage from Zurich for legal fees related to a discrimination lawsuit. Although Harvard notified its primary insurer promptly, it failed to inform Zurich until three years later, leading to a denial of coverage based on the policy's reporting requirements. The United States District Court upheld Zurich's decision, emphasizing that timely notice is a condition precedent for coverage under the claims-made-and-reported policy. The guide outlines key lessons for firms regarding the importance of understanding insurance policy terms, the necessity of prompt written notice for claims, and the distinction between claims and potential claims. It also advises firms to implement procedures for timely reporting and to retain documentation of all communications with insurers, highlighting the need for clarity in insurance policy language.