We continue our series, Five Things You Need To Know About
D&O Insurance with part three, Improper Claims Denials. We
raise this point to illustrate some of the ways that insurance
carriers improperly deny D&O insurance claims. Miller Friel
attorneys are quite passionate about improper claims denials
because insurers routinely deny valid claims, but mask the validity
of claims by way of long letters, quoting pages and pages of policy
language excerpts, legalese, and insurance-speak, all in an effort
to convince policyholders that the claim denial is proper.
We've even seen a situation where an insurer denied coverage by
citing to policy language from an earlier policy, even though the
policy at issue had broader coverage language on the very issue in
dispute. It is simply in the insurance carriers' best interest
to deny a claim and hope that the policyholder will go away.
