Eleventh Circuit Affirms Ruling Of No Coverage Based On Insured's Failure To Cooperate

As a condition to coverage under standard liability policies, the insured is required to cooperate with its insurer. The provision, termed the "cooperation clause," typically requires the insured to assist with and participate in the investigation, defense and settlement of a claim or suit. However, even if an insured does not honor the cooperation clause, it does not necessarily lose coverage. Courts across the country frequently have ruled that the circumstances under which an insurer may deny coverage due to an insured's failure to cooperate are limited.

In many jurisdictions, an insured's failure to fully cooperate is excused where the insured has otherwise substantially complied, and several jurisdictions impose additional limitations before absolving the insurer of its duty to defend or indemnify its insured. For example, the insurer may be required to demonstrate that it diligently sought the insured's cooperation, that the insured's lack of cooperation was