Insurance Coverage Opinion Letters

Brown & Bullock advises insurers, insureds and policyholders to navigate complex insurance coverage issues, both before a loss and after submission of a claim.  Our attorneys have substantial experience evaluating a wide array of insurance policies to provide clear and comprehensive coverage opinions and create tailormade strategies for both insurers making coverage decisions and policyholders seeking to challenge adverse coverage decisions.  Read more below and contact our Maryland insurance lawyers today to learn more.

What is an Insurance Coverage Opinion Letter?

An insurance coverage opinion letter is a written legal analysis that evaluates whether, and to what extent, an insurance policy provides coverage for a specific claim, loss, or set of circumstances.  A well-prepared coverage opinion letter applies Maryland insurance law to the facts at hand and explains how courts are likely to interpret the policy.

Importantly, a proper coverage opinion requires a review of the entire policy, including all endorsements and exclusions, as well as an understanding of how Maryland agencies and courts tend to construe insurance policy language. A well-drafted insurance coverage opinion letter will typically address the following:

• The relevant facts surrounding the claim or potential claim
• The specific policy provisions that may provide or limit coverage
• How a coverage trigger interacts with or is limited by other provisions of the policy
• Any exclusions or conditions that could affect the outcome
• Relevant Maryland statutes and case law
• Potential litigation risks, unsettled areas of law, and potential regulatory exposure, if any

When Are Insurance Coverage Opinion Letters Used?

Insurance coverage opinion letters are typically used to evaluate whether an insurer’s duty to provide coverage is triggered following a loss.  Coverage opinion letters are often used to:

• Evaluate whether a claim triggers a coverage obligation
• Assess whether a reservation of rights letter is appropriate
• Determine whether an insurer owes a duty to defend an insured when litigation is initiated or appears imminent
• Analyze complex claims involving multiple policies or insurers
• Prepare for anticipated coverage litigation
• Review policy language to identify potential regulatory exposure

Types of Insurance Coverage Opinion Letters

Like claims, no two coverage opinion letters are the same.  Coverage opinion letters are policy and loss specific. Some of the most common types of insurance coverage opinion letters are as follows:

• Pre-claim opinion letters addressing anticipated or hypothetical losses
• Claim-specific opinions focused on active or pending insurance claims
• Reservation of rights analyses evaluating potential coverage defenses
• Denial support opinions analyzing whether denial is legally justified
• Defense and indemnity opinions distinguishing between coverage duties
• Allocation opinions involving shared or overlapping coverage

A well-written insurance coverage opinion letter is often critical in mounting an effective defense to allegations of unfair claim settlement practices.  Conversely, an incomplete or incorrect insurance coverage opinion letter can create exposure for insurers that policyholders facing a denial of coverage can exploit in litigation.

Types of Insurance Policies that Use Insurance Coverage Opinion Letters

Insurance coverage opinion letters are common in the insurance industry.  While insurance coverage opinion letters are common, they should never be treated as mere formalities.  In litigation, such opinion letters are often used to support or defend against a claim.  We advise clients on insurance coverage opinion letters pertaining to a wide range of industries, including, but not limited to:

• Commercial general liability
• Commercial vehicle
• Commercial property
• Homeowners/Renters
• Professional liability/Errors and omissions
• Directors and Officer
• Employee theft/Crime
• Data breach/Cyber
• Excess insurance
• Reinsurance

Contact Brown & Bullock, LLC Today

Brown & Bullock has extensive experience preparing and analyzing insurance coverage opinion letters relating to a wide variety of insurance coverage and can help you make an informed decision regarding a claim or coverage dispute.  For more information, contact us to start building a comprehensive strategy today.