What is an insurance coverage dispute?

An insurance coverage dispute is a disagreement between an insurance company and a policyholder over the scope and amount of coverage provided by a particular policy. It often arises when an insurance company denies a claim that the policyholder believes should be covered under the policy. In Delaware, this kind of dispute is often litigated in court. The parties involved may argue whether a certain incident or claim is covered by the policy, and the court may make a ruling on the matter. The insurance company may argue that the policy does not cover certain types of claims, or that there is a specific exclusion in the policy which would prevent the claim from being covered. The policyholder may argue that the policy should cover the incident in question, or that there is a specific clause in the policy which requires the insurance company to cover the claim. Based on the facts of the case, the court will make a ruling on the dispute. If the policyholder proves that the insurance company is liable, the court will order the insurance company to provide the coverage that the policyholder is seeking. If the policyholder does not prove their case, the court will dismiss the claim. Depending on the result of the case, either side may appeal the court’s decision.

Related FAQs

What is an insurance coverage dispute?

Related FAQs

Related Blog Posts