The decision to pay or not pay a questionable claim still comes with a cost. (Photo: B-D-S Piotr Marcinski/Shutterstock.com)
An insurer is faced with two options when its insured tenders a suit and coverage is doubtful: (1) deny coverage but risk a bad faith suit in retaliation; or (2) defend under a reservation of rights and seek reimbursement in another action.
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