[WSBARP] Coverage for LLC

[Mike Zeno]

Thanks, Brent.  I was hoping to hear from a coverage counsel.  😊

The Law Office of G. Michael Zeno, Jr., P.S.
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Wednesday, September 30, 2026 12:58 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Coverage for LLC

Mike -

As a 15 year former insurance coverage attorney, I will advise that it truly does depend on the policy. Are you talking about a homeowner's policy? A commercial general liability policy? An auto policy? Umbrella? Professional Malpractice? Is this for a carrier that is an "admitted" carrier to Washington or an excess or surplus lines carrier that is not admitted in Washington?

Though, like most of our estate documents, the majority of a policy is boilerplate and is pulled together through uniform provisions.....it is a wild west of how terms and conditions are pulled together.

Again, as a former industry representative, I am extremely cautious and always conservative with - when in down, contact your carrier/agent and make sure that you have coverage. It was my job to be the one who would write the "I'm sorry, this is not a covered claim" letter - and we never lost. Not to say we weren't sued, but I had a 100% perfect trial or Summary Judgment record because the penalties for improper denial are so terrible in Washington that we would only ever recommend denial if we were certain we could win in court.

Good luck!


Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

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On Wed, Sep 30, 2026 at 12:37 PM Mike Zeno <mikez at zenolawfirm.com<mailto:mikez at zenolawfirm.com>> wrote:
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

The Law Office of G. Michael Zeno, Jr., P.S.
T:  (425) 947-8050<tel:(425)%20947-8050>   F:  (425) 947-8052<tel:(425)%20947-8052>
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Confidential/Privileged Communication: This email and any attachments are confidential, privileged and intended only for the intended recipient(s).  Unauthorized disclosure, copying, distribution or use of this email is prohibited.  If you received this email in error, please notify me immediately so we can arrange for the message and documents to be returned and deleted. Thank you.
IRS Circular 230 Disclaimer: Any tax advice provided in this communication (including attachments) is not intended or written to be used, and it cannot be used, by the recipient or any other taxpayer (i) for the purpose of avoiding penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction.  You should seek advice based on your particular circumstances from an independent tax advisor.

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