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Insurer Claim Files: Privilege and Work-Product Protection

By Robert D. Goodman and Josephine D. Coakley
April 30, 2008

In coverage litigation and bad faith actions between insurers and policyholders, courts' views as to the discoverability of claim file material have varied significantly, depending on the jurisdiction and the specific fact pattern presented. Privilege issues concerning insurer claim files have proven difficult because it is in the 'very nature of an insurer's business to investigate and evaluate the merits of claims.' Cutrale Citrus Juices USA, Inc. v. Zurich Am. Ins. Group, 2004 WL 5215191 at *2 (M.D.Fla. Sept. 10, 2004). Courts will thus often face a highly fact-specific inquiry concerning whether claim file documents are prepared in 'anticipation of litigation' and therefore qualify as work product.

Similarly, under the attorney-client privilege, only the provision of legal advice is protected; relying on this truism, some courts have opined that, '[i]n the insurance context, to the extent that an attorney acts as a claims adjuster, claims process supervisor, or claims investigation monitor, and not as a legal advisor, the attorney-client privilege does not apply.' Country Life Ins. Co. v. St. Paul Surplus Lines Ins. Co., 2005 WL 3690565 at *5-7 (C.D.Ill. Jan. 31, 2005).

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