Carrier v. Policyholder Recovery Action
A carrier that does the right thing by defending an insured is owed reimbursement if it is ultimately proven that the potential for coverage does not exist. Hardiman & Carroll actively pursues such claims and has recovered substantial sums for its carrier clients.
A Hardiman & Carroll carrier client, faced with litigation pending against a named insured, agreed to defend the insured under a reservation of rights. Lauren O’Brien performed an extensive investigation into the scope of work of the insured at the site along with the policy and policy application documents. Lauren advised the carrier that the potential for coverage was not present based on the work performed and a rarely relied-upon exclusionary provision. The carrier ultimately decided to continue to defend the insured and seek recovery following conclusion of the underlying construction defect action.
After the underlying action concluded, Michael Hardiman and Dolores Dalton filed an action against the insured to recover sums paid by the carrier in defending the non-covered claims. Michael and Dolores obtained a judgment on behalf of the carrier in excess of $700,000.