Search
Copyright © 2025 ALM Global, LLC. All Rights Reserved.
Civil-trial attorney Stacy A. Carpenter, shareholder at Polsinelli Shughart’s Denver office, provides some advice for insurance agencies—which she says are facing an increasing number of lawsuits as they get dragged into policyholder coverage disputes with insurance carriers.
What are some of the biggest or newest legal risks facing insurance agencies today?
Increasingly, alternative claims are being filed against agencies. In this situation, the insured sues the carrier for breach of contract and bad faith and argues the claim should be covered. The insured simultaneously sues the insurance agent and argues that if there is no coverage, the agent failed to procure the proper insurance.
Lawsuits that include both the agency and the insurance company as defendants can present difficult strategic decisions for the agency. The agency may choose to argue for coverage as a defense to a failure-to-procure claim. However, this strategy often puts the agency in the position of having to support the plaintiff’s case and arguing against the insurance company—and it is never ideal for defendants in a lawsuit to point the finger at each other.
Already have an account? Sign In Now
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.
Guide
Sponsored by CoreLogic
How Digital Automation Operates in Today's Property Claims Lifecycles
Discover how digital automation is helping property insurance carriers simplify and expedite the claims process and overcome challenges posed by a growing number of claims in recent years.
Case Study
Sponsored by CoreLogic
Revolutionizing Claims Processing: How a Leading Insurer Transformed Water Mitigation Reviews
Discover how one insurer drastically improved the efficiency of their water mitigation claim reviews, reducing costs and time while enhancing decision-making. Learn how this approach can transform your claims process, making it faster, more accurate, and less resource-intensive.
Article
Sponsored by TruStage
Filling the Middle-Market Life Insurance Gap in America
The mid-market life insurance segment holds tremendous potential, with 39% of consumers planning to buy life insurance in the next year (1). This white paper explores the unique opportunities for you to scale your mid-market segment and drive sustainable growth.
Copyright © 2025 ALM Global, LLC. All Rights Reserved.
Sign In
Sign In
