The Right To Reimbursement Of Defense Costs?

Law360, New York (August 12, 2009, 2:50 PM EDT) -- Pursuant to basic and long-standing principles of insurance coverage law, liability insurers are held to a high standard when it comes to defending their policyholders.

The duty to defend is broadly construed and insurers are typically obligated to provide a complete defense to any claim for which there is a mere “potentiality” of coverage.

It is now common practice, however, for insurers to defend their policyholders pursuant to a reservation of rights that includes the reservation of a purported right to later seek reimbursement of certain...
To view the full article, register now.