Recouping Defense Costs For Noncovered Claims

Law360, New York (September 16, 2010, 5:10 PM EDT) -- A liability insurer’s duty to defend can be one of the most costly obligations undertaken by an insurer. Indeed, defense costs often exceed the policy limit for indemnity, sometimes several times over.

Nonetheless, even where an insurer believes that it owes no duty to defend a claim or suit, the insurer may decide to defend its insured subject to a reservation of its rights until the insurer’s defense obligation can be adjudicated rather than leave an insured to defend itself and expose the insurer to potential...
To view the full article, register now.