Policyholders Win In W.Va. Over Consequential Damages

Law360, New York (March 28, 2014, 5:52 PM EDT) -- A policyholder seeking insurance coverage is naturally in a somewhat precarious position: It has already fully performed its core contractual obligation, having paid its premium, and can only hope that its insurer will perform its contractual duties. If the insurer wrongfully fails to do so, the policyholder has no real opportunity to "cover" or obtain a substitute performance and its only real recourse is to bring suit to compel an insurer to live up to its covenants. As a result, policyholders inevitably incur consequential damages arising from insurers' breach of contract....

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