Accomplished Attorneys Providing Solid Legal Counsel And Representation

Your Insurance Coverage Attorneys

As part of our insurance defense practice, our attorneys have advised insurance company clients on a broad range of insurance coverage issues, including all aspects of general and auto liability policies, first-party property policies and professional liability policies.

For 30 years, at Melito & Adolfsen P.C., our lawyers have been developing the law in these areas in the appellate courts, primarily in New York, New Jersey and Connecticut, but also in high-exposure cases across the country. When you are facing a dispute with a policyholder, you may be facing a claim of insurance fraud or bad faith. We will vigorously defend against these claims. Our lawyers will prepare an effective defense strategy to minimize the cost to you, always working toward a favorable result.

When Do Insurance Companies Need Coverage Counsel In New York?

Insurance coverage claims can be difficult to resolve, but some require an especially high level of legal experience to handle successfully, including:

High-exposure claims requiring immediate coverage determination: Significant exposure demands early clarity. We evaluate third-party claims immediately upon notice to determine whether policy terms trigger defense obligations.
Multiparty disputes with allocation issues: Complex construction and commercial losses frequently involve multiple insurers and overlapping policies. We analyze policy towers to establish equitable risk distribution and protect your primary limits.
Novel or emerging risk coverage questions: New commercial realities create unlitigated policy questions. We review policy forms against changing statutory landscapes to insulate carriers from unexpected liabilities.
Reservation of rights situations: Defending under a reservation of rights requires strict compliance with New York common-law estoppel rules and timely statutory disclaimers under N.Y. Ins. Law § 3420(d)(2) when bodily injury is involved. We draft clear, legally resilient notices that preserve all your coverage defenses without triggering bad faith claims.
Declaratory judgment actions: When policy interpretations clash, proactive litigation secures your position. We initiate and defend declaratory judgment actions in state and federal courts to establish your coverage obligations clearly.
Settlement negotiations requiring coverage analysis: We provide real-time evaluations during negotiations to ensure settlement contributions align strictly with covered risks.

Confer with our attorneys to determine if your coverage issue requires immediate intervention.

Types Of Insurance Coverage Disputes We Handle

The lawyers at Melito & Adolfsen P.C. regularly handle disputes that include the following:

Commercial general liability coverage: We defend carriers against improper claims involving additional insured endorsements, construction defects and complex bodily injury lawsuits.
Directors and officers (D&O) policy disputes: Our team reviews corporate governance exposures and handles high-stakes disputes involving executive liability, shareholder actions and regulatory compliance.
Professional liability/errors and omissions coverage: We analyze claims against licensed professionals, evaluating whether the alleged negligence falls within policy exclusions or retroactive coverage windows.
Cyber insurance coverage issues: We address modern digital risks, evaluating policy triggers for data breaches, ransomware demands, business interruption losses, and first-party recovery claims.
Property and casualty claims: We handle first-party and third-party disputes involving significant commercial property damage, business interruption valuation, and complex casualty losses.
Excess and umbrella policy disputes: We protect your higher layers of coverage, analyzing horizontal and vertical exhaustion parameters to determine exactly when excess obligations arise.
Reinsurance matters: Our litigators manage complex treaty and facultative disputes, representing ceding companies and reinsurers in high-value allocation and contract interpretation.

Throughout the history of our firm, our attorneys have taken on new insurance coverage disputes as they have emerged, making us conversant in a wide array of case types.

Reputable Counsel And An Effective Defense

Clients come to us seeking advice at all stages of a claim – from the first notice received, when they need to determine whether they can handle the matter independently with confirmation of a legal point, to a formal coverage analysis and recommendation, to prosecuting or defending coverage litigation.

Our experience means that we handle cases and render coverage opinions expeditiously and effectively. New litigation files are handled with a practical eye toward an early resolution. We also monitor trials on behalf of clients concerned about the outcome and in need of clear, timely reporting.

Frequently Asked Questions: New York Insurance Coverage Litigation

The first step to resolving a coverage issue is to understand how the law works. Here are answers to the most common questions we see related to insurance coverage, provided by our legal staff members.

Can an insurance company be held liable for bad faith in New York, and how do you defend against these claims?

Yes, policyholders can sue insurers for bad faith, but New York courts enforce an exceptionally high legal standard for these claims. To succeed, a plaintiff must prove that the insurance company demonstrated a “gross disregard” for the insured’s interests. The plaintiff must show that the insurer placed its own financial interests above the insured’s and that no reasonable carrier would have acted similarly under the circumstances.

We defend against bad faith allegations by proving a genuine dispute existed regarding the coverage terms. Our litigation team establishes that the carrier conducted a timely, thorough investigation and based its decisions on an arguable interpretation of the policy text or controlling case law. By demonstrating a rational, documented basis for the coverage position, we defeat the high threshold required for bad faith recovery.

What is the difference between a duty to defend and a duty to indemnify in New York?

In New York, the duty to defend is significantly broader than the duty to indemnify. The duty to defend arises whenever the allegations in a third-party lawsuit fall potentially within the scope of the policy coverage. Even if the claims against the insured are completely groundless, false, or fraudulent, the carrier must provide a legal defense if any single allegation touches upon a covered risk.

Conversely, the duty to indemnify depends strictly on actual liability. It requires the insurer to pay a final judgment or a covered settlement. This obligation only triggers if the evidence at trial or the facts of the settlement definitively establish that the loss falls squarely within the policy’s coverage provisions. We regularly leverage this distinction to secure early summary judgment rulings that limit or eliminate a carrier’s long-term indemnity exposure, even while managing the initial defense.

Don’t Risk High-Exposure Claims – Call Our Office Today

If you are an insurance carrier, reinsurer or self-insured entity based in the U.S., Europe or the Middle East, we can assist you with your defense and coverage litigation needs. Secure proactive legal representation to protect your company’s bottom line. Contact our Manhattan office today at 212-238-8900 to speak directly with a litigation attorney, or complete our secure online contact form to request a formal consultation regarding your pending insurance coverage matter.

Important Notice: As a dedicated defense practice, WE ARE NOT A PLAINTIFF’S FIRM. We exclusively represent insurance companies, self-insured corporations, and businesses. We do not accept personal injury or workers’ compensation plaintiff cases.