If you strip away the titles and headings, an insurance policy is simply a contract. The policyholder/insured promises to pay a substantial amount in insurance premiums in exchange for the insurer’s promise that it will bear the financial risk of any covered loss.
Yet when a significant covered loss occurs, sometimes an insurer will respond by dragging its feet, asserting strained policy interpretations, or summarily discounting or denying some or all claims—often without a reasonable explanation (and sometimes without any explanation at all!).
And perhaps most frustrating, sometimes an insurer will handle a claim in a way that would be considered “bad faith” under applicable law. Insurance bad faith happens when an insurer stonewalls, contorts the policy language, or refuses to pay a valid claim when it knows the claim should be covered. In these situations, rather than fulfill its promise to pay, the insurer’s objective is to do pretty much anything possible not to pay, thus limiting its financial exposure, even if only temporarily. The whole point is to pad the bottom line and boost profitability.
That’s where Bearstone Law, PLLC, comes in. One of the Firm’s core practice areas is helping clients enforce their rights under their insurance policies. The Firm helps clients navigate every part of the process, from initially submitting claims, negotiating with insurers, participating in pre-litigation mediation, and if it becomes necessary, initiating formal proceedings through court litigation (or arbitration proceedings, if required).
Coverage disputes are serious business. Often, the potential proceeds of an insurance policy can be a company’s or individual’s greatest asset. When an insurer wrongfully delays, denies, underpays, or restricts coverage, policyholders should not attempt to go it alone. The Firm draws from a deep well of insurance-coverage experience and can engage quickly, competently, and strategically to protect clients’ interests in their insurance policies.
Below is brief overview of what insurance recovery is from our perspective.
What Is Insurance Recovery?
In this context, insurance recovery refers to the process of enforcing a policyholder’s right to payment/reimbursement under an insurance policy following the wrongful denial of a covered loss. It goes far beyond simply sending a write-up for a claim and hoping for the best. Rather, effective insurance recovery first requires obtaining an intimate understanding of the policy language and what the insurer’s and policyholder’s respective rights and obligations are, both under the applicable policy language and under applicable law.
From the Firm’s perspective, insurance recovery often involves:
- Interpreting complex insurance policy language
- Identifying all available coverage under all potentially applicable policies
- Analyzing interplay between policy language and applicable law
- Pre-litigation assessment of claims handling process
- Monitoring loss-adjustment process
- Accurately and persuasively framing, presenting, and valuing covered losses
- Challenging improper claim denials or underpayments
- Rebutting improper interpretations of policy language
- Negotiating with insurers
- When necessary, initiating litigation in court or an alternative forum (e.g., mediation or arbitration)
Bearstone Law, PLLC, has experience litigating under numerous policy types, including:
- General and Excess Liability Policies
- Bermuda Form Policies
- Property and Casualty Policies
- Cybersecurity Risk Policies
- Business Interruption Policies
- Directors and Officers (D&O) Policies
- Errors and Omissions (E&O) Policies
- Merger & Acquisition Representation and Warranty Policies