How coverage disputes take shape
Insurance coverage litigation often begins with a declaratory judgment action, where one side asks a court to decide whether the policy covers a claim. For liability policies, the duty to defend is usually broader than the duty to pay a judgment or settlement, and an insurer may have to defend a suit even when coverage for the final outcome is in doubt. Reservation of rights letters let an insurer defend while preserving its arguments, and they can raise questions about who controls the defense. In New York, an insurer that intends to deny coverage for certain injury or death claims has to give written notice of the disclaimer promptly, and delay can affect its position. Policy language is read as a whole, and ambiguous terms are often construed against the insurer that wrote them.
Records to assemble
Gather the complete policy, including every endorsement, declarations page, and renewal, along with policies from prior years and any umbrella or excess coverage. Keep the notice you gave, the date you gave it, and all correspondence from the carrier and any adjuster. Late notice can be a defense for the insurer, so if you have not yet notified every carrier that might respond, do it now. Document the loss or the underlying claim thoroughly, and keep records of costs as they are incurred. Do not settle an underlying lawsuit without the insurer's consent unless counsel has reviewed the policy's consent provisions.
First steps we take
We read the policy against the facts and identify the precise grounds the insurer has raised, because each exclusion or condition has its own analysis. We look at whether other policies or other insurers share responsibility, and whether the insurer's handling of the claim raises issues beyond the contract itself. We also consider whether appraisal, mediation, or litigation is the right forum, and whether the policy limits where a coverage suit can be filed. You leave with a clear view of where the dispute stands and what to send the carrier next.
