Where coverage fights arise
Disputes come up in property and business interruption claims after fires, floods, or theft, and in liability policies when a company or a person is sued and asks the insurer for a defense. Directors and officers, professional liability, cyber, and builder's risk policies each produce their own disputes. Frequent issues include whether notice was timely, how an exclusion applies, how much a loss is worth, and whether the insurer must pay for a defense while coverage is still contested. In New York, as in many states, an insurer's duty to defend is broader than its duty to pay a judgment. New York's approach to insurer bad faith is narrower than in some states, so the policy language and the facts usually carry the case.
Protecting the claim
Give notice to every insurer that might cover the loss as soon as you are aware of it, since late notice is a frequent basis for disputes. Keep a complete copy of each policy, including declarations, endorsements, and renewals, and ask the broker for the full policy if you do not have it. Document the loss with photos, inventories, financial records, and repair estimates. Answer insurer requests in writing and keep copies. Be careful about admitting fault or settling a claim against you without the insurer's consent, because many liability policies require it.
Reading a denial or reservation
A reservation of rights letter means the insurer is handling the claim while keeping the option to deny coverage later, and it can affect who controls the defense. A denial letter should give reasons, and those reasons often point to the next step. Our review covers the policy, the correspondence, and the policy's own deadlines for proof of loss, appraisal, or suit, which can be shorter than people expect. We consider whether negotiation, appraisal, or litigation is the practical route. For a business with several policies, we look at how they fit together and which insurers should be involved.
