New York commencement of duty to defend

In American Home Assurance Co. v. BFC Construction Corp.,. No. 4323 (N.Y. App. Div. Feb. 22, 2011), the named insured tendered its defense of the underlying construction defect lawsuit to its insurer.   An additional insured was also named as a defendant in the lawsuit.  The intermediate appellate court held that, because the interests of the first named insured and the additional insured were not adverse, the first named insured’s tender also constituted a tender on behalf of the additional insured.