General Liability

General liability claims involve third-party bodily injury and property damage allegations against the insured. Correspondence in GL claims must navigate the distinction between the duty to defend and the duty to indemnify, and often involves coordination with defense counsel.

Key Correspondence Patterns

Coverage Determination

• Reservation of rights — When the complaint alleges facts that could fall inside or outside coverage, the ROR must identify each potentially applicable exclusion or limitation
• Coverage-position letters — Formal letters stating whether the insurer will defend, indemnify, or both, and under what conditions
• Additional-insured disputes — Correspondence addressing whether a third party qualifies as an additional insured under the policy

Third-Party Communications

• Claimant acknowledgment — Acknowledging a third-party claim and explaining the investigation process
• Settlement correspondence — Offers, counteroffers, release transmittals, and Medicare Secondary Payer compliance notices
• Subrogation — Demand letters to responsible parties or their insurers

Common Errors

• Failing to reserve on all potentially applicable exclusions at the outset
• Mixing coverage analysis with liability analysis in the same letter
• Not separately addressing the duty to defend vs. the duty to indemnify
• Omitting Medicare reporting obligations in settlement correspondence