Goldberg Segalla partner Ashlyn M. Capote authored an article in the New York Law Journal analyzing a developing issue in New York insurance coverage litigation: whether allegations contained in a third-party complaint can trigger an insurer’s duty to defend a purported additional insured.

Ashlyn examines how courts evaluate additional insured tenders when the underlying plaintiff does not sue the named insured directly, often because New York’s Workers’ Compensation Law prohibits such claims.

As risk transfer remains a critical component of construction and labor law litigation, disputes frequently arise over whether a general contractor, owner, or other entity is entitled to coverage under a subcontractor’s liability policy. Ashlyn demonstrates how courts have addressed the question of whether allegations crafted by parties seeking coverage are sufficient to trigger an insurer’s duty to defend.

Drawing on a survey of recent New York state and federal decisions, Ashlyn explains that many courts focus not on the allegations themselves, but on whether there are underlying facts demonstrating a reasonable possibility that the named insured’s acts or omissions contributed to the accident.

“The better question is whether the facts outside of the Tort Plaintiff’s complaint trigger coverage,” Ashlyn writes, “and it makes no difference whether those facts are contained in the third-party complaint, the Tort Plaintiff’s bill of particulars, witness accounts, deposition testimony, or something else.”

The article analyzes several recent decisions addressing the role of third-party complaints, extrinsic evidence, and the practical realities of New York construction litigation. Ashlyn highlights how courts often distinguish between conclusory allegations designed to trigger coverage and factual evidence that genuinely supports a duty to defend.

She also discusses the significance of the workers’ compensation bar, noting that courts frequently consider an injured worker’s inability to sue their employer directly when evaluating additional insured coverage disputes.

In closing, Ashlyn emphasizes that courts are increasingly focused on the underlying factual record rather than the source of the allegations themselves.

“It does not matter who is making the allegations – the underlying plaintiff or the party seeking coverage – if the thing triggering coverage is truly a ‘fact’ rather than a conclusory or self-serving allegation.”

READ THE FULL ARTICLE HERE (Subscription Required): “Self-Serving Allegations and Extrinsic Facts: An Analysis of Whether Allegations in a Third-Party Complaint can Trigger Coverage for an Additional Insured in New York, ” New York Law Journal, July 8, 2026.

MORE ABOUT GOLDBERG SEGALLA’S ASHLYN M. CAPOTE:

Ashlyn advises insurers on complex coverage matters and handles insurance coverage litigation throughout New York State. She manages all aspects of coverage litigation, from pleadings and discovery to mediation and settlement negotiation.

Ashlyn regularly counsels clients on their obligations to provide coverage to insureds under their policies and their ability to seek additional coverages on behalf of their insureds. She frequently provides advice regarding coverage obligations related to liability policies, including issues related to additional insured coverage, priority of coverage, construction defects, environmental coverage, and Coverage B. She also routinely provides guidance regarding first-party coverage issues including those related to COVID-19 and catastrophic coverage claims resulting from natural disasters. She frequently publishes and speaks on these issues as well.