Insurer's Duty to Settle for Policy Limits When Defending Non-Covered Claims Under Reservation of Rights
Avoiding Liability and Extracontractual Damages
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will guide attorneys through one of the most challenging of all issues: whether to settle for the policy limits while defending a potentially non-covered claim under a reservation of rights when taking into account almost certain damages exceeding policy limits. In addition to existing case law, the panel will also discuss new insight from the Tenth Circuit Court of Appeal in Owner’s Ins. Co. v. Dockstader, No. 19-4156 (10th Cir. June 29, 2021) (Utah law).
Outline
- How the issue arises
- Insurer's traditional options
- Insights from Owner’s Ins. Co. v. Dockstader
Benefits
The panel will address critical issues, including:
- Whether the duty to defend includes an absolute duty to settle if an offer falls within the policy limits--even where the insurer has filed a declaratory judgment action disputing coverage
- Is there a greater duty to defend in the third-party context?
- What is the effect of a repayment clause in the underlying policy?
- How can the insurer avoid liability and avoid a claim of bad faith?
- Must an insurer accept all offers below the policy limits, regardless of circumstances?
Faculty
Peter S. Selvin
Partner
Ervin Cohen & Jessup
Mr. Selvin, Chair of ECJ's Insurance Coverage and Recovery Department, is a business trial lawyer with over 30... | Read More
Mr. Selvin, Chair of ECJ's Insurance Coverage and Recovery Department, is a business trial lawyer with over 30 years of experience. While he specializes in insurance coverage and international litigation, his experience has touched many different areas of law, including real estate, intellectual property, and professional liability disputes. Within those areas, Peter’s practice includes both trying cases and counseling clients to avoid litigation. Chief among his strengths is his ability to counsel clients and help achieve strategic business solutions.
Close
Scott F. Bertschi
Partner
Clyde & Co US
Mr. Bertschi focuses his practice on insurance coverage, professional liability defense and data breach response. He... | Read More
Mr. Bertschi focuses his practice on insurance coverage, professional liability defense and data breach response. He represents insurance companies in litigating coverage disputes, including the institution of declaratory judgment actions and actions to rescind insurance policies, the defense of breach of contract actions and actions in which the insured alleges bad faith or extra-contractual damages, and actions between insurance companies to resolve allocation and relative priority issues. He also advises insurance companies on all aspects of the claims-resolution process, including the provision of coverage opinions, advice on the allocation of indemnity payments, strategies to minimize the risk of bad faith suits and suits to collect consent judgments, and advice as monitoring counsel.
Close
Craig M. Hirsch
Senior Counsel
Cox Castle & Nicholson
Mr. Hirsch represents companies, directors, and officers in third-party liability insurance recovery matters and... | Read More
Mr. Hirsch represents companies, directors, and officers in third-party liability insurance recovery matters and coverage disputes with insurance companies. He has achieved victories for corporate policyholders resulting in hundreds of millions of dollars in insurance recoveries over the past 17 years. He has extensive experience advising on financial lines and third-party liability insurance programs, focusing on directors & officers (D&O), professional liability (E&O), private equity and asset management, cyber protection, employment practices liability, media liability, fiduciary liability, commercial general liability, commercial property, and similar policy forms.s.
Close