Hunton Insurance Recovery Blog

Insurance is bought and sold under the assumption that insurance contracts will be interpreted and honored based on the parties’ negotiated language and that insurers will investigate and adjust claims in good faith based on that language. Coverage disputes should not become a game of shifting the goal post and post-hoc justifications looking to deny, rather than honor, the purchased coverage. Two recent disputes—Cook Brothers Construction, LLC v. Frankenmuth Insurance Co., and Constantino v. Paul Revere Life Insurance Co.—highlight different ways courts are asked to resolve these disputes and hold insurers accountable if justifications for coverage denial under a broad reservation of rights may amount to bad faith or unfair practices.