Insurance law generally has to do with insurance coverage, compliance,
and defense litigation. For the purposes of this post, we are going to
delve deeper into “insurance litigation.”
Insurance litigation typically involves the insured and the insurer, but
it can involve outside parties (third parties) as well.
In the usual scenario, the insured has suffered or sustained damages and
he or she is trying to recover these damages under their insurance policy.
Most insurance litigation cases center on one question, “Does the
insured’s policy cover their loss or liability?”
Insurance coverage actions can deal with a significant amount of money,
sometimes hundreds of thousands, if not millions of dollars. Often, an
insurance action will involve a dispute relating to reinsurance or primary
or excess overage.
Insurance coverage cases frequently hinge on the “language”
in the policy and its interpretation. Sometimes, it is necessary to closely
examine the case law, which analyzes the language in such policies.
After Hurricane Katrina struck, scores of homeowners took their insurance
companies to court, challenging the flood exclusions contained in their
In the aftermath of Katrina’s devastation, thousands of claims were
filed in state and federal courts, specifically in Louisiana and Mississippi,
which led to court rulings.
In these Katrina-related claims, tens of billions are at stake and insurance
companies nationwide have taken notice of the vigorous litigation.
What Does Insurance Litigation Involve?
Insurance litigation involves various types of disputes, including but not limited to:
- Disability claims
- Insurance bad faith
- Extra-contractual liability
- Construction defects
- First party claims
- Third party claims
- Errors and omissions liability
- Professional liability
- Guaranty fund issues
- And more
Insurance litigation is often divided into two categories: first party
claims and third party claims. First party claims are filed by the insured
against the insurer, as in the Hurricane Katrina claims – these
have to do with the losses suffered by the policyholder.
In contrast, third party claims are filed against the insured by a third
party, someone who is not covered directly under the insurance policy.
Third party claims are filed because the third party is claiming that the
insured caused him or her to suffer personal injuries or other damages.
In a third-party claim, the central focus of the dispute is whether the
underlying claim is actually covered by the policyholder’s insurance.
Chicago Insurance Litigation Attorneys
If you are involved in an insurance dispute,
contact Rifkind Patrick LLC to discuss your matter with a Chicago insurance litigation lawyer.
With extensive experience representing individuals and businesses in all
types of insurance disputes, our results-driven litigation team always
strives to achieve the most favorable outcome for our clients.