The role of the third-party claim handler is to thoroughly and objectively investigate and resolve all issues of coverage, liability, and damages. Claim handlers enjoy arguing their theories on who is legally liable or responsible, and negotiating damage settlements. But few claim handlers will place explaining a coverage position on their list of favorite tasks because they are not as familiar and comfortable with writing a coverage position letter or explaining their coverage conclusions to the insured.

To address the situation, legal counsel is often asked to draft the letter, a sometimes dangerous practice because it could make legal counsel the actual claim handler. A safer practice is to have the draft letter reviewed by counsel. With that goal in mind, it is necessary to review the technical aspects of claim handling in relation to coverage position letters in order to offer practical advice on how to avoid potentially dangerous situations.

Types of Coverage Position Letters

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.