Hunton Insurance Recovery Blog

Happy 4^th and 250 years of freedom . . . to contract!

Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.

This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.