Copyright © International Risk Management Institute, Inc. (IRMI)
By Douglas R. Emerick
Although all insurance disputes are basically contract related there are several distinctions. First party insurance disputes are those involving the insured versus the insurance company or vice versa and usually involve coverage issues or value of the claim. Those that involve third-party liability are disputes that not only involve the insured and the insurance company but also the underlying third-party claim against the insured. In some cases the dispute involves multiple insurance companies fighting over their obligation to the insured. Cases such as these that go to trial are far more costly to resolve and sometimes result in the insured incurring significant out of pocket expenses.