Insurers increasingly are using law firms rather than traditional in-house personnel as claim handlers, particularly on major claims by business insureds. Insureds are impacted in two significant ways.
First, law firms tend to be quite aggressive about denying coverage claims, which is perhaps not surprising given their ethical obligation to be “zealous advocates.”
Second, in the event of coverage litigation, insurers argue that the activities of their law firm claim handlers are immune from discovery based on the attorney-client privilege or the work-product doctrine.
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