"New Product Covers Legal Costs If Buyers Decide to Challenge Claim Denial." Sclafane, Susanne. 2008. National Underwriters Property and Casualty.
The risk that a claim won’t be paid -- a potential downside that every buyer of insurance faces -- was an uninsured exposure until recently, according to the developers of a new policy to provide coverage so that risk managers can contest such rejections.
The new coverage, available to businesses of all sizes, will pay up to $250,000 in legal expenses associated with contesting the denial of an insurance claim under a commercial policy.
We know that wrongful coverage denials occur in our industry. There’s a reason coverage attorneys exist today,” Mr. White [Jason White, a managing director for Professional Services Group of Swett & Crawford, in the Los Angeles office of the Atlanta-based wholesale brokerage] said, explaining the impetus for the product launch. In fact, he noted, the idea came from a coverage law firm—Surdyk & Baker in Chicago.