{"id":128324,"date":"2026-03-06T13:46:13","date_gmt":"2026-03-06T13:46:13","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=128324"},"modified":"2026-03-06T13:46:13","modified_gmt":"2026-03-06T13:46:13","slug":"denmark-insurance-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/denmark-insurance-disputes\/","title":{"rendered":"Denmark: Insurance Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-128324","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-disputes","jurisdictions-denmark"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Werenberg Advokater<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/02\/werenberg.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Werenberg Advokater<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/02\/werenberg.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance Disputes laws and regulations applicable in Denmark<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What mechanism do insurance policies usually provide for resolution of disputes between the insurer and policyholder?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Complaint options with the insurance company: Policyholders can typically start by filing a complaint directly with their insurance company. The company usually has a procedure for handling complaints and will attempt to resolve the dispute internally.<\/p>\n<p>Insurance Appeals Board: This is an independent body that handles disputes between policyholders and insurance companies. The Board can only handle disputes regarding personal insurance matters and only cases that are of such uncomplicated nature that the matter can be decided on a written basis.<\/p>\n<p>Legal proceedings: If the dispute remains unresolved by the insurance company or the Insurance Appeals Board, policyholders may pursue traditional litigation to have their case resolved in civil court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a protocol governing pre-action conduct for insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific requirements for procedural steps prior to initiating legal action for insurance cases as such. The policyholder must observe the steps outlined in the insurance policy before filing a lawsuit. Thus, correct notification must be submitted to the insurance company. Notification should be made as soon as possible to the insurance company. There is an overall limitation period of 3 years from the time of the damage. The burden of proof that a covered damage has occurred lies with the policyholder. Therefore, the policyholder is also obligated to submit all relevant information, documentation, etc., which may contribute to clarifying the matter at the insurance company\u2019s requests in order to make a decision in the case. It is also the policyholder&#8217;s obligation to ensure damage limitation if necessary.<\/p>\n<p>Similarly, insurance companies are subject to a range of legislation governing how insurance companies may and must handle insurance cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are local courts adept at handling complex insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Danish courts are home to a plethora of insurance disputes, that are filed every year. Due to this, the system is designed to ensure efficient processing of various types of disputes concerning insurance coverage. Both parties also have the choice to appeal a verdict to one of the high courts. Insurance cases can also, in certain cases, be tried at the Supreme Court. Lastly, a special appeal board for insurance disputes has been established that is also equipped to handle issues that can also be brought before Danish courts. Based on this, Denmark is very adept at handling complex insurance disputes. However, it is important to note that insurance cases in civil courts are not handled by judges specialized in insurance disputes. The Danish litigation system follows a general principle that judges are generalists, meaning they do not necessarily have specific expertise in insurance law. However, there are exceptions to this in other areas of law, where the judge will hold special expertise. This is not the case for insurance disputes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution mandatory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong> Regarding all insurance disputes<\/strong><br \/>\nFor disputes regarding insurance, there are no mandatory alternative dispute resolutions that either the insurer or the policyholder has to choose before seeking out traditional adjudication. However, parties always have the option of alternative dispute resolution, by choosing to settle their disputes through negotiations, mediation, arbitration etc.<\/p>\n<p><strong>Regarding private consumers<\/strong><br \/>\nAs it pertains to insurance in particular, private consumers (as policyholders) have the option of filing a formal complaint to the special Insurance Appeals Board. The policyholder can bring their case before this body, for any complaints they have regarding their own insurance-policy. However, this route is also not mandatory, meaning that either party may always bring their case before the court, as their first means of dispute resolution.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are successful policyholders entitled to recover costs of insurance disputes from insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The costs that arise from the settlements of insurance disputes, are regulated by the same rules that regulate other civil disputes. These rules entail that the, loosing party must compensate the winning party, for costs of the insurance dispute, unless the parties have agreed otherwise. Thus, successful policyholders are entitled to recover cost of insurance disputes from insurers. However, regardless of the above stated, the court can decide that losing party must not or only partially compensate the winning party for its expenses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an appeal process for court decisions and arbitral awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Court decisions<\/strong><\/p>\n<p>The appeal process for court decisions regarding insurance-disputes follows the same rules as other civil disputes in the Danish judicial system. Every party has a right to have their case tried before 2 court instances at the minimum.<\/p>\n<p>The general rule dictates, that new cases are brought before the district court. However, any party to a dispute, the right to have their case tried two different courts. Firstly, by a district court \u2013 and upon appeal of said decision \u2013 to one of the high courts. Disputes may also be tried by a third court \u2013 the supreme court, upon a request and approval from the Appeals Permission Board.<\/p>\n<p><strong>Arbitral Awards<\/strong><\/p>\n<p>Arbitral Awards are binding for the parties of the insurance dispute. The instances where an arbitral award can be overturned or deemed void are quite limited with a very narrow access to traditional adjudication.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How much information is the policyholder required to disclose to the insurer? Does the duty of disclosure end at inception of the policy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Policyholders are required to disclose any information that is deemed to be of importance upon entering an insurance-agreement with the insurer. The consequence of withholding information or concealing a circumstance that is assumed to be of importance or affects the risk assessment, can result in the agreement not being binding upon the parties.<\/p>\n<p>The policyholder\u2019s duty to disclose continues to remain during the entire period of the insurance coverage. If a risk circumstance specified in the policy is changed in such a way, that the company&#8217;s risk thereby increases beyond what can be assumed to have been taken into account upon entering the agreement, the policyholder is under obligation to disclose such a change. If the policyholder fails to do so, the company is free from liability, granted that it would not have provided the insurance, if they conditions brought about the change had existed when the agreement was entered.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available for breach of the duty of disclosure, and is the policyholder\u2019s state of mind at the time of providing the information relevant?\u202f\u202f\u202f\u202f\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are relatively strict rules for what insurance companies are able to do, when they suspect that a policyholder is withholding information and thus, breaching the duty to disclose, especially in regards to private consumers. Insurance companies must deal in accordance with the rules on good practice. The companies may only use personal surveillance if the companies have a well-founded and documented suspicion of fraud. The company must be able to present concrete documentation for the basis of the suspicion. Companies should always choose the least intrusive investigation method and try less intrusive methods like electronic searches first if they want to investigate a policyholder.<\/p>\n<p>However, companies as policyholders, do enjoy less protection under the current regulation. CEOs, business owners and etc. who have taken out insurance on behalf of the company, are not being considered injured parties within the meaning of the regulation, which is a requirement for being covered by the regulation\u2019s rules on investigations conducted by insurance companies. In practice, this means that insurance companies have unrestricted access to conduct investigations against, business owners and etc. for insurance policies they have taken out on behalf of the company. However, insurance companies must still always comply with applicable Danish law and good practice when conducting such investigations.<\/p>\n<p><strong>The policyholder\u2019s state of mind<\/strong><\/p>\n<p>The policyholder is obliged to ensure that they provide correct information at the time of entering the agreement, but also at the time of reporting the loss or damage. The requirement to provide correct information is not dependent on the policyholder&#8217;s state of mind, other than the usual contract law and consumer protection rules which are generally applicable in Danish law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are certain types of provisions prohibited in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Provisions that are deemed unusual compared to the terms that are common within the insurance industry, or the insurer interprets a standard insurance provision contrary to industry custom, the provision or the entire contract can be overridden, either in part or in whole, if it is obvious that the policyholder would otherwise be at a disadvantage compared to other policyholders in similar situation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is a duty of utmost good faith implied in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When entering an insurance agreement, the policyholder must answer questions in a loyal manner, but the policyholder cannot be required to provide information about matters that are not asked about and that they cannot know that the company deems important. There are no strict requirements for the policyholder&#8217;s proof of good faith.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do other implied terms arise in consumer insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Consumer insurance contracts does not operate with implied terms. Thus, in case of doubt, the interpretation that leads to the most unfavourable result for the party that has been responsible for drawing up the contract must be chosen. Due to the insurance company being the party that drew up the agreement, they bear that risk. Furthermore, any terms that the consumer have had no opportunity to influence the content of, in case of doubt of interpretation, must be interpreted in favour of the consumer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there limitations on insurers\u2019 right to rely on defences in certain types of compulsory insurance, where the policy is designed to respond to claims by third parties?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where the insurance policy is designed to respond to claims by third parties, there are often limitations on insurers&#8217; right to rely on certain defences. In compulsory insurance, there may be limitations on the types of exclusions that insurers can impose. In some compulsory insurance policies, liability is imposed on the insured regardless of fault or without the need to establish fault (no-fault).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the usual trigger for cover under insurance policies covering first party losses, or liability claims? Are there limitation periods for the commencement of an action against the insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common ways, that coverage is triggered are:<\/p>\n<p>1) When a loss occurs due to specific perils or events explicitly listed in the insurance policy. However, another way to trigger coverage<\/p>\n<p>2) When coverage is triggered for all perils except those specifically excluded in the policy. This provides broader coverage than named perils\/insurance triggers, and the burden is on the insurer to prove that a particular peril is excluded.<\/p>\n<p>3) Lastly, some policies cover losses resulting from accidental and unforeseen events, regardless of the specific cause, as long as it is not excluded.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which types of loss are typically excluded in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance does not cover intentional damage. Therefore, the policyholder is liable for any loss they intentionally caused. Some policies exclude coverage for consequential or indirect losses that result from a covered event. For example, a property insurance policy may cover fire damage but exclude operational losses or other financial losses, such as operational disruptions and\/or reduction of output.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts typically construe ambiguity in policy wordings in favour of the insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. As shortly touched upon under question 11, in cases of ambiguity or doubt regarding the interpretation of the insurance policy, the interpretation that results in the most unfavourable outcome for the party responsible for drafting the contract must be chosen. Since insurance companies draft the agreements, they bear this risk.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a \u2018but for\u2019 or \u2018proximate\u2019 test of causation apply, and how is this applied in wide-area damage scenarios?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A requirement for insurance coverage is that a causal connection can be determined between the actions or omissions of the party causing the damage and the actual damage which has occurred. In Danish law, the clear general rule in the context of compensation is whether the actual damage would have occurred if the negligent act or omission had not taken place. In cases of multiple damages, separate assessments must be made. In the case of multiple damages, the insurance company will examine each damage as an individual claim. The policyholder bears the burden of proof for causation but depending on the circumstances and specific factors of the case, the burden of proof may shift.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the legal position if loss results from multiple causes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The policy may specify if a concurrent causation clause applies, which prescribes that if a loss is caused by multiple factors, and at least one of those factors is covered by the insurance policy, the insurer may be liable for the entire loss.<\/p>\n<p>On the other hand, the policy may specify that an efficient proximate cause clause applies, whereafter the focus is on determining the dominant cause that set-in motion the chain of events leading to the loss. If the efficient proximate cause is a covered peril, the insurance policy may respond. However, if the primary cause is an excluded peril, the insurer may not be liable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available to insurers for breach of policy terms, including minor or unintentional breaches?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When there is a breach of policy conditions by the insured, insurers usually have several remedies available. The remedies are typically depending on the nature and severity of the breach and can vary based on the terms outlined in the insurance policy and applicable laws. Common remedies include options as, policy cancellation, denial of coverage or even legal action.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides cover for more than one insured party, does a breach of policy terms by one party invalidate cover for all the policyholders?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, insurance policies can be structured in different ways, and the language used in the policy will dictate how breaches affect coverage for other insured parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where insurers decline cover for claims, are policyholders still required to comply with policy conditions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Even if insurers decline cover for claims, policyholders are generally still required to comply with the policy conditions, unless the policy itself is terminated or voided due to specific reasons outlined in the policy. This is due to the fact that insurance policies are contracts, and both the insurer and policyholder have obligations outlined in the terms and conditions of the policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is quantum assessed, once entitlement to recover under the policy is established?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Once entitlement to recover under an insurance policy is established, the process of assessing quantum can vary depending on the type of insurance policy, the nature of the loss, and the applicable laws. However, depending on the type of loss, there are some typical factors to be considered when assessing quantum, for example, the loss based on documentation, any insurance policy terms and limits for insurance coverage or the operation loss for businesses. In some cases, it may be necessary to seek expert opinions to assess the quantum of damages. For example, in cases involving specialized property or liability issues, experts in those fields may provide evaluations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides for reinstatement of damaged property, are pre-existing plans for a change of use relevant to calculation of the recoverable loss?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The relevance of pre-existing plans for a change of use to the calculation of recoverable loss in the context of a policy providing for reinstatement of damaged property depends on the specific terms and conditions outlined in the insurance policy. However, as in general it can be said that when a policy provides for the reinstatement of damaged property, the insurance coverage is typically intended to restore the property to its pre-loss condition. Thus, the focus is on repairing the property in a manner that is consistent with its original use and purpose at the time of the loss.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">After paying claims, are insurers able to pursue subrogated recoveries against third parties responsible for the loss? How would any such recoveries be distributed as between the insurer and insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>After paying claims to the policyholder, the insurer subrogates the policyholder\u2019s claim against any third parties, if the third party is responsible for the loss. To the extent that the insurance company has compensated the policyholder, the responsible third party is liable against the insurance company. This means that the company&#8217;s claim is limited to the claim that the injured party themselves could have claimed against the responsible third party (or their insurance company).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right to claim damages in the event of late payment by an insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Firstly, the policyholder always has a duty to mitigate their loss, meaning they must do everything within their power to ensure that the insurance company\u2019s liability is minimized. This duty still applies if the insurer delays payment. The policyholder may have the right to claim additional damages, due to the insurers failure to make payment. However, this heavily depends on the insurance policy, since many policies already exclude coverage for operational losses or other financial losses, such as operational disruptions and\/or reduction of output that subsequently emerges from the original damage, for which there is coverage.<\/p>\n<p>What is most probable is that the policyholder will claim the interest that accrues on a claim during legal proceedings against the insurer. If the policyholder wins the case, the interest is typically awarded to compensate for the delay in payment, ensuring that the policyholder is compensated for the financial loss caused by the insurer&#8217;s failure to pay on time for, a claim there should have been coverage for. Furthermore, the insurance payment benefit can be claimed 14 days after the company has been able to obtain the necessary information to assess the insurance event and determine the amount of the insurance. If, before a final settlement can take place, it is determined that the company must pay a portion of the claimed amount, this portion can be requested for payment according to the provision in the previous sentence. Subsequently, Insurance companies are obligated to inform policyholders about the above stated.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can claims be made against insurance policies taken out by companies which have since become insolvent?\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The injured party also enters into the insured&#8217;s rights against the company if the injured party&#8217;s claim for compensation is covered by the insured&#8217;s bankruptcy, debt restructuring etc. To the extent that the injured party&#8217;s claim has not been covered, the full claim for compensation can be directed against the company. If the policyholder becomes bankrupt, this has no effect on the insurance agreement apart from what follows from the general rules of the law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are class action or group litigation options available to facilitate bulk insurance claims in the local courts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Class action or group litigation options are generally available in all civil cases, including insurance claims, as long as the cases meet the specific requirements for this form of litigation. This typically involves having a large group of individuals with common legal or factual issues, and the claims need to be sufficiently similar to justify collective action. While class action or group litigation can be an effective way to handle bulk insurance claims, it does require careful consideration of factors such as the number of claimants, the nature of the claims, and whether the group\u2019s interests align sufficiently to proceed as a collective case.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the biggest challenges facing the insurance disputes sector currently in your region?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, a central challenge in insurance disputes is still the practical handling of claims over time. Many disputes arise because the parties disagree on whether enough information has been gathered, whether the insurer can postpone a final coverage decision, and how this affects limitation periods, evidence, and the overall process. This is particularly relevant in larger and more technical matters (for example construction- and engineering related losses), where the factual and expert basis can take time to establish. Another challenge is the growing number of disputes linked to weather-related events, where questions of causation, mitigation and the correct calculation of loss are often difficult and heavily fact-driven. Finally, parallel complaint mechanisms (in particular for consumer insurance) can be efficient, but they also require early assessment of whether a matter is suitable for written-only treatment or whether it should instead be pursued through the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do you envisage technology affecting insurance disputes in your jurisdiction in the next 5 years?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Technology will likely affect insurance disputes in two main ways.<\/p>\n<p>First, insurers and insureds increasingly rely on digital evidence and data-based assessments (such as logs, telemetry, remote inspections and automated tools). This can speed up claims handling, but it also creates new disputes about the reliability of the data, the methods used, and how much weight should be given to \u201cblack box\u201d conclusions.<\/p>\n<p>Second, regulation will matter more. The EU AI Act is being phased in and will be fully applicable from 2 August 2026 (with certain earlier milestones), which is expected to increase focus on documentation, transparency and governance where AI is used in underwriting or claims. In addition, DORA has applied since 17 January 2025 for financial entities (including insurers), and it strengthens requirements for ICT risk management and incident handling, which will likely become relevant in disputes where cyber events, outages or third-party providers form part of the loss scenario.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant trends and developments in insurance disputes within your jurisdiction in recent years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In recent years, we have seen a clearer and more frequent focus on coverage denials and strict coverage positions, particularly in commercial matters. In practice, this often drives disputes towards early, detailed discussions on policy interpretation (scope of cover, exclusions, conditions, and causation) and\u2014where relevant\u2014whether the insurer has had a sufficient basis to decide the claim. This aligns with what we also observe in our own case load, including an increasing number of situations where corporate policyholders experience that cover is declined and therefore seek specialist dispute support.<\/p>\n<p>A second trend is the continued importance of technical and expert-driven disputes, especially in construction and engineering-related claims, where the outcome often depends on factual causation and the technical characterization of the damage. In this space, policy wording and market clauses (including LEG-type discussions in construction all risks\/engineering contexts) continue to be a recurring theme in disputes and negotiations.<\/p>\n<p>Finally, complaint mechanisms remain relevant in the Danish landscape, particularly for consumer-related disputes. The work and statistics of the Insurance Complaints Board (Anken\u00e6vnet for Forsikring) continue to provide a practical \u201creality check\u201d for how certain dispute categories are handled and resolved, including procedural issues such as rejection\/dismissal of complaints and developments in processing times.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where in your opinion are the biggest growth areas within the insurance disputes sector? \u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We expect the biggest growth in three main areas.<\/p>\n<p>First, commercial coverage disputes, including cases where cover is declined and the dispute turns on a close reading of exclusions, conditions, notification\/claims handling, and causation. This is an area where we already see increasing activity in practice.<\/p>\n<p>Second, construction\/engineering-related losses and large technical claims, where disputes are typically evidence-heavy and involve expert assessments on causation and quantum. We also expect continued growth in matters connected with construction defects and building-related insurance disputes, which is supported by the ongoing attention to types of building damage and inspection\/claims handling issues in Danish reporting on building damage insurance.<\/p>\n<p>Third, cyber and operational disruption losses (including incidents involving third-party providers), where disputes increasingly involve both technical incident narratives and legal questions about the scope of cover and loss calculation. Alongside this, complaint-board practice and statistics will likely remain an important \u201cvolume driver\u201d in the overall disputes ecosystem (even if not all cases proceed to court).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4035<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/128324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=128324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}