Coverage Litigation Should Be Stayed to Avoid Prejudice to the Insured

More and more often insureds are being forced to litigate with their insurers to protect rights under insurance policies, while at the same time those insureds must actively defend against the very litigation for which they seek insurance coverage. Indeed, insurers often will pursue litigation against their insureds to establish the absence of any coverage obligation if there appears to be a question regarding the existence of a defense or indemnity obligation with respect to underlying litigation. Alternatively, due to potentially applicable statutes of limitation, or a need to seek judicial intervention to force an insurer to assist in an underlying defense for which the insurer has refused coverage, an insured may be required to file coverage litigation before underlying litigation is concluded.

29 minute read April 30, 2007 at 10:32 AM
By
Linda Kornfeld
Coverage Litigation Should Be Stayed to Avoid Prejudice to the Insured

More and more often insureds are being forced to litigate with their insurers to protect rights under insurance policies, while at the same time those insureds must actively defend against the very litigation for which they seek insurance coverage.

This premium content is locked for LawJournalNewsletters subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

Law firms are shifting toward financing strategies that allow them to invest in growth while increasing flexibility, liquidity and long-term planning discipline. The conversation is no longer simply about acquiring equipment. It is about building a financial structure that supports continuous operational growth.

July 02, 2026

Why advanced AI will change legal practice without making lawyers obsolete.The future value of lawyers will come less from generating first drafts and more from knowing how to choose, feed, test and deploy professional systems in a way that serves the client’s strategy.

June 30, 2026

Companies are no longer judging leaders on what they have already done. They are judging them on whether they can lead what is coming next. And what is coming next demands exactly the quality that defined the Oregon Trail generation: the ability to navigate genuine transformation, not just manage through disruption.

June 30, 2026