Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 07 JULY 2026

For Businesses And Litigators, Insurance Coverage Is A Litigation Strategy, Not Just A Risk Management Issue

Butler Snow LLP
Butler Snow LLP
Contributor
Butler Snow LLP

Butler Snow LLP

Some law firms promise client service. Butler Snow delivers on that promise. Surveys by respected...

View firm profile
Explore more from Butler Snow LLP

So your business (or your client’s business) just got sued. What started out as a nice day just turned sour. Now what do you do? If you are like most businesses, after being served with a lawsuit, the first call...

United KingdomInsurance
A. David Fawal
A. David Fawal
Author LinkedIn connections

So your business (or your client’s business) just got sued. What started out as a nice day just turned sour. Now what do you do? If you are like most businesses, after being served with a lawsuit, the first call is often to litigation counsel. But what about the business’s insurer? The insurance carrier, if contacted at all, may be an afterthought. That sequence is understandable—but it can also be a missed opportunity.

Insurance coverage is often viewed as a separate discipline reserved for claims adjusters and coverage lawyers. In reality, it can be one of the most important strategic considerations for businesses in commercial litigation. A thoughtful coverage analysis early in a case can influence everything from litigation budgets to your settlement leverage.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Strait Of Hormuz: Current Situation And Implications For Marine Insurance

The Strait of Hormuz has become a critical flashpoint for global maritime trade following the outbreak of hostilities involving Iran in 2026. With approximately one-fifth of global oil trade passing through this vital waterway, commercial shipping now operates under unprecedented security threats including missile attacks, drone strikes, and mine risks. Marine insurance premiums have skyrocketed from 0.125% to as high as 10% of vessel values, fundamentally altering the economics of Gulf trade and forcing th
United KingdomInsurance
Lester Aldridge LLP
Lester Aldridge LLP
Article

A Tailored Regime: PRA And FCA Consult On UK Insurance Captives

The UK's Financial Conduct Authority and Prudential Regulation Authority have unveiled Stage 1 of a new tailored regulatory framework for insurance captives, designed to be proportionate, competitive, and reflective of captives' lower risk profiles. With consultations closing in October 2026 and implementation targeted for mid-2027, the regime promises streamlined authorisation, bespoke capital requirements, and simplified supervision—but will it be enough to compete with established offshore jurisdic
United KingdomInsurance
HFW
HFW
Article

Insuring Offshore Wind Growth Amid Rising Risks, Defects And Claims

The offshore wind industry faces unprecedented insurance challenges as it scales rapidly to meet global energy demands. With subsea cable failures, design defects, and evolving technologies creating complex coverage issues, insurers and wind farm operators must navigate LEG exclusions, series loss clauses, and contingent business interruption claims. How can the insurance market balance risk limitation with the viability of this critical renewable energy sector?
United KingdomInsurance
HFW
HFW
Article

Six Minutes From Crisis To Covered: How Artificial Intelligence Is Transforming Pet Insurance Claims

Swedish Insurtech Lassie has launched in the UK with a revolutionary pet insurance model that combines AI-powered claims processing, gamified health rewards, and personalized pet care guidance through a single app. The platform promises to settle claims in just six minutes and offers a prevention-first approach that could fundamentally reshape the traditional pet insurance market. With over 20 million UK pets currently uninsured, Lassie's innovative approach may finally bridge the gap between pet owners and
United KingdomInsurance
Browne Jacobson LLP
Browne Jacobson LLP
Article

Can Insurers Avoid Covering Defence Costs Under A D&O Policy Before Fraud Is Proved?

In a landmark ruling, the English Commercial Court has determined that insurers must continue advancing defence costs under D&O policies even when fraud allegations are pending, provided a non-avoidance clause is present. The decision addresses whether such clauses violate public policy and establishes that insurers cannot withhold coverage until fraud is either admitted or proven by final court decision.
United KingdomInsurance
Mishcon de Reya LLP
Mishcon de Reya LLP
Article

Disclosure Risks For Insurers As A Non-party To English Arbitration Or Court Proceedings

When can insurers' claims handlers' correspondence and documents be disclosed in English arbitration or court proceedings? This article examines the boundaries of Legal Professional Privilege and explores the circumstances under which materials produced by P&I Club and H&M claims handlers may be subject to disclosure obligations, even when the insurer is not a party to the proceedings.
United KingdomInsurance
HFW
HFW
Article

FCA Pure Protection Market Study: Fair Value Findings - What Firms Need To Do

The FCA has published its final report on the distribution of pure protection products, examining firms' fair value assessments under the Consumer Duty and PROD 4. The regulator found significant gaps in how insurers and intermediaries evidence their fair value conclusions, particularly around commission structures and guaranteed acceptance over 50s products, signaling that supervisory action will follow for firms with weak frameworks.
United KingdomInsurance
TLT
TLT
Article

LMA Wording Excludes Hormuz 'Toll' Payments: What This Means For Insurers

The Lloyd's Market Association has introduced a new model clause for marine hull underwriters addressing transit fee demands in the Strait of Hormuz, fundamentally shifting how insurers approach coverage when payments are made to facilitate passage through Iranian territorial waters. This development transforms underwriting focus from navigation risk to sanctions control risk, with significant implications for both insurers and vessel operators navigating these geopolitically sensitive waters.
United KingdomInsurance
Browne Jacobson LLP
Browne Jacobson LLP
Article

TDEC Adopts Amendments To Its Aquatic Resource Alteration Permit (ARAP) Regulations Providing Clarity And Reducing Regulatory Barriers To Development In Tennessee.

Tennessee's Board of Water Quality, Oil and Gas has adopted significant amendments to the state's Aquatic Resource Alteration Permit rules, fundamentally changing how isolated wetlands are regulated following the Supreme Court's Sackett decision. The new regulations establish a tiered system for wetland alterations based on ecological quality, with streamlined permitting processes and expanded exemptions for certain construction activities. These changes promise to reduce regulatory burden on developers whi
United StatesEnvironment
Butler Snow LLP
Butler Snow LLP
Article

California Governor Signs Legislation Curtailing CIPA Website Claims

Businesses operating websites and mobile applications have faced a growing wave of lawsuits under the California Invasion of Privacy Act (CIPA), a 1967 statute enacted long before the modern internet. Plaintiffs increasingly argue that common website technologies—including cookies, pixels, and analytics tools—violate CIPA provisions originally aimed at wiretapping, eavesdropping, and pen registers.
United StatesPrivacy
Butler Snow LLP
Butler Snow LLP
Article

Texas Data Center Policy: What Has Changed And What To Watch

Texas is ramping up oversight of data center projects as Governor Abbott's directive adds new review requirements to an already complex interconnection process. The policy debate now encompasses transmission infrastructure, water resources, tax incentives, and community impacts. With the 2027 legislative session approaching, stakeholders in Texas's booming data center industry face an evolving regulatory landscape that could fundamentally reshape how large-scale digital infrastructure projects are developed
United StatesEnergy and Natural Resources
Butler Snow LLP
Butler Snow LLP
Article

New Federal Policy Prohibits Certain Gain-of-Function Research And Restricts Certain International Projects

The U.S. government has released a sweeping new policy that prohibits federal funding for "dangerous gain-of-function research" and establishes unprecedented oversight requirements for life sciences research involving biological agents. Research institutions must now evaluate all proposed and ongoing federally funded projects against expanded risk criteria, implement new review structures, and monitor even non-federally funded research...
United StatesFood, Drugs, Healthcare, Life Sciences
Butler Snow LLP
Butler Snow LLP
Article

How OIG Used Data Analytics And Extrapolation In A $12.4 Million Hospital Audit

An HHS Office of Inspector General audit of Methodist Hospital in San Antonio reveals how a review of just 100 claims led to a $12.4 million overpayment recommendation through statistical extrapolation. The audit targeted specific high-risk billing areas including Inpatient Rehabilitation Facility claims, certain diagnosis-related groups, and outpatient billing patterns, uncovering documentation and coding compliance issues that hospital leadership should examine within their own Medicare claims.
United StatesAccounting and Audit
Butler Snow LLP
Butler Snow LLP
Article

NIH Proposes New Requirement To Share Study Results With Research Participants

The National Institutes of Health has issued a Request for Information on a draft policy that would mandate researchers share plain-language study results with clinical research participants. The proposed requirement would apply broadly to all NIH-supported clinical research and could create significant operational challenges for academic medical centers with large research portfolios. Public comments are due October 26, 2026, providing institutions an opportunity to address practical implementation concern
United StatesGovernment, Public Sector
Butler Snow LLP
Butler Snow LLP
Article

Governor Abbott Directs Review of Data Centers Seeking ERCOT Grid Connection

Governor Greg Abbott has directed Texas energy regulators to conduct a comprehensive verification and audit of data center projects in ERCOT's interconnection queue. With approximately 90 percent of the 474 gigawatts in connection requests tied to data centers, this directive aims to ensure all projects meet applicable requirements before advancing through the interconnection process.
United StatesEnergy and Natural Resources
Butler Snow LLP
Butler Snow LLP