Failure to Submit Proof of Loss for Damaged Ambulances Defeats Coverage, N.J. Federal Judge Rules

TRENTON, N.J. — A New Jersey federal judge has awarded summary judgment to an insurer in a dispute over coverage for ambulances damaged during Superstorm Sandy, finding the plaintiff’s failure to submit a proof of loss is fatal to its claims of breach of contract and bad faith.

In an Aug. 25 order, Judge Michael A. Shipp explained that the proof of loss requirement constituted a condition precedent to coverage with which the policyholder willfully failed to comply.

Two ambulances owned by Sea Bright First Aid Squad Inc. were allegedly damaged during Superstorm Sandy on Oct. 29, 2012. Approximately one …