Insurance law is enormously complex; lawsuits involving coverage disputes can be factually complex as well. It is therefore imperative to have a tenacious, knowledgeable legal team to litigate your insurance or coverage dispute case.
Property Damage Coverage Disputes
Due to the high repair and mitigation costs involving property damage caused by dangerous materials, insurance companies may try to exclude such damage from coverage. For instance, if a plaintiff suffers damage to an insured property from mold, an insurance company may argue that faulty engineering of the structure caused the damage, claiming the damage falls under a professional services exclusion.
“Acts of God” exclusions are also the subject of much insurance and coverage dispute litigation, as insurers may attempt to deny coverage in the event of hurricanes, tornados, hailstorms, or other extreme weather events.
Directors and Officers Insurance Disputes
Directors and officers liability insurance protects business executives from liability arising out of their wrongful acts being imposed against them individually.
In commercial cases, shareholder derivative and securities class action lawsuits may prompt companies to seek coverage under their directors and officers policies for the wrongful acts of their executives. Companies may also seek coverage for the criminal acts of their executives in response to claims based on the Foreign Corrupt Practices Act or when executives misappropriate or embezzle money from the company.
Errors and Omissions Insurance Disputes
Errors and omissions liability insurance protects businesses from client claims for damage from negligence or unsatisfactory service. Some regulatory agencies require that businesses in specific industries carry errors and omissions insurance.
This type of insurance is designed to protect companies from claims of negligence by covering the cost of defense and, if necessary, settling a case or paying a judgment. When an errors and omissions insurance policy provider refuses to pay out on a damaged client’s claim, litigation may result.
Damages in Insurance & Coverage Disputes Cases
Compensatory damages are the first type of compensation allowed for in insurance and coverage dispute cases. These damages seek to put the plaintiff in the position she would have been in had the insurance company not wrongfully withheld coverage. For example, in commercial property insurance and coverage disputes, loss of business income claims may become the focus of litigation. In lost income claims, a business attempts to prove that the insurance company should compensate it for income lost as a direct result of the covered property damage.
Consequential damages may also be available, compensating the plaintiff for damages that are not the direct result of the denial of coverage but should have been foreseen by the insurer.
In cases involving delays in claims investigation and settlement by the insurance company, plaintiffs may obtain attorneys’ fees and statutory penalties against the insurance company.
David A. Axelrod & Associates: Proven Results in Insurance Coverage Disputes
David A. Axelrod & Associates has successfully represented clients in insurance coverage disputes. In one such case, David A. Axelrod & Associates obtained a $300,000 settlement for a client whose disability policy insurance company denied benefits, in spite of the fact that he lost his vision.