[WSBARP] Coverage for LLC

[Mike Zeno]

I've heard from time to time that if an insured natural person transfers to an LLC, the LLC will be an insured under the policy.  Can anyone explain why this is so?

I realize it depends on the policy.  But under the ALTA Homeowners Policy (2021), I'm having a hard time finding anything that provides that sort of coverage, at least explicitly.  I've looked at "Continuation of Coverage," which extends coverage to breach of warranty claims against the insured.  But often the transfer into the LLC is by quit claim deed, which creates an obstacle to the warranty claim (though there are arguments to the contrary that might work).  In any case I'm looking for another basis for LLC coverage.  The definition of the insured ("You") doesn't seem to help.

Any thoughts?

Mike

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