Productively Pursuing and Maximizing Insurance Claims( continued from page 10)
A single event can implicate several types of coverage found in multiple different insurance policies. For example, a vessel colliding with a terminal may involve loss to:
• the terminal’ s structures and equipment covered by a marine property insurance policy;
• the terminal owner’ s profits covered by business interruption insurance( and other time element coverages);
• claims by third parties( adjacent property owners or the government, for example) alleging property damage from pollutants released from the vessel or terminal’ s structures that are covered by marine general liability insurance and pollution liability insurance;
• claims by shareholders alleging malfeasance in allowing the collision to happen( depending on which entity was responsible for the tugs, for example) that are covered by D & O insurance; and
• this does not begin to untangle the myriad insurance implications when analyzing claims against the vessel and potential subrogation claims.
It’ s important to look for responsive coverage from a company’ s entire insurance portfolio when facing a loss or claim.
Three Things to Keep in Mind When Pursuing Insurance Many policyholders don’ t productively or efficiently pursue all of the insurance that is provided by their insurance policies. Here are three considerations when filing claims:
1. Be prompt. One of the most important first steps in pursuing insurance is to make sure that notice of a loss, claim, or occurrence is prompt and otherwise meets the requirements of the insurance policy. 2. Be thorough. It is important to look at all potentially responsive coverages that may be located in several different insurance policies with varying notice provisions. The general rule is that notices should be given under all possible policies that might be triggered— regardless of type, year, or layer. The old adage“ better safe than sorry” never rings more true than when it comes to a company giving notice to its insurers.
3. Be diligent. As already stressed, the notice provisions in insurance policies also may specify how, and in what form, notice should be given. The policies typically identify to whom notice should be addressed, and request a statement regarding all the particulars of the underlying claims.
After a loss or claim has occurred, the policyholder should present its claim to the insurer in a way that will maximize coverage. Many legal issues, such as trigger of coverage, number of occurrences, and allocation, can significantly affect the existence or amount of an insurance recovery. Moreover, certain causes of loss or liability may be excluded from coverage, while others are not. These are complex issues that vary by state law and require a high level of legal sophistication to be understood and applied to the facts of a particular case.
The insurer may respond to its policyholder’ s notice letter with a request for information. Such requests may seek to have the policyholder characterize its claim in a way that will limit coverage. Before the policyholder engages in any such communications with its insurance company, the policy holder should know what legal issues are likely to arise, and how best to describe its claim to maximize coverage.
It’ s important to get the little things right from the beginning to avoid being blindsided and enhance the likelihood of succeeding at the finish line. p – 2025 BLANK ROME LLP
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