Policyholders provide information to their insurers all the
time. That information can be highly important, sensitive, and
confidential—but is the transmission of it protected from
disclosure? Maybe so, maybe not. How high should you keep your
fences?
The general rule is that there is no insured-insurer privilege
that protects the confidentiality of communications between a
policyholder and its insurer. For communications to be protected
from disclosure, they must fall within the scope of the traditional
privileges (the attorney-client privilege or work product
protection)—or within the ambit of the "common
interest" exception that applies to both. "Common
interest" is recognized by courts in many jurisdictions as a
limited exception to the rule that disclosure of privileged
communications to a third party waives the privilege.
