3 Coverage Tips As 2nd Circ. 'Swipes Left' On Tinder Claim

Policyholders frequently are vexed by the nuances of reporting requirements in claims-made policies, which generally provide coverage only for a “Claim” made during the policy period. While this may sound like a straightforward inquiry, the definition of “Claim” and the specific language used in a policy’s notice section may lead to a knee-jerk denial from an insurer followed by costly “form over substance” debates that may conclude with lasting financial consequences. As always, the words matter, and in this case, the days mattered too.

Last month, Tinder received a disappointing decision from the Second Circuit Court of Appeals, overturning its victory on a motion to dismiss filed by its insurer in a coverage action. Tinder received a letter in February 2016 from a consultant alleging that his contributions to the “super like” functionality of the popular dating app wrongfully went uncompensated. The consultant filed suit against Tinder on Wednesday, Aug. 17, 2016, and Tinder’s insurance broker provided notice at 8:42 a.m. on Monday, Aug. 22, 2016.

Tinder’s insurer denied coverage on the grounds that the February 2016 letter was a Claim and the policy had expired over the weekend, on Saturday, Aug. 20, 2016, rendering the notice untimely. The Second Circuit held that the letter in February 2016 was a Claim under the policy and remanded for consideration of whether Tinder’s obligation to provide notice during the policy period was suspended by a New York statute regarding the performance of contractual obligations falling on Saturday, Sunday, or a public holiday.