In some limited contexts, courts have held that late notice is excused. When an insured lacks knowledge of an occurrence, late notice is generally excused. Likewise, if an insured does not believe a claim will arise, notice may be justifiably delayed. Another excuse that has been accepted in a minority of states is that the insured believes it will not be held liable for an injury. In these states, if an insured does not believe its actions caused the incident giving rise to a claim, late notice is excused.
States differ in their treatment of a lack of knowledge of coverage as a justifiably delay.
This situation can arise when an insured is informed by an insurance agent or legal counsel that coverage is not available. Thus, the insured does not immediately provide notice. Then, upon a second review of the policy by the insured or another third party, it is found that coverage may exist. In these situations some courts say late notice is justified. However, other jurisdictions have held that such a delay not excused.