Parties, Roles, and Litigation Teams
Counsel Roles
Coverage counsel analyzes the policy against the claim, drafts reservation of rights letters and coverage opinions, and handles declaratory judgment actions. The role is distinct from defense counsel, who represents the insured in the underlying case.
Monitoring counsel is a related role tracking the underlying defense on the carrier's behalf without representing the insured.
Alternative Names:
Coverage Attorney, Insurance Coverage Counsel
Why it Matters?
Keeping the roles separate is essential because their interests diverge: defense counsel owes duties to the insured while coverage counsel serves the carrier, potentially adverse to the insured on coverage. Communications between defense counsel and coverage counsel are a recurring privilege problem in later bad faith litigation, and defense counsel should be careful about what coverage-relevant information is transmitted to the carrier.
Frequently Confused with
Related terms
Frequently asked questions
Why are coverage and defense counsel separate?
What should defense counsel avoid reporting?
