Insurance 101 – Chapter 9 – Volume 135 – Wrongful Refusal to Defend

Wrongful Refusal to Defend

Some courts find that the insurer’s failure to defend is merely a breach of contract. An erroneous failure to furnish a defense, absent additional facts, entitles the insured only to foreseeable consequential contract damages. The contract damages include the amount of the insured’s defense costs and the amount of any judgment entered against the insured
up to the amount of the policy limits.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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