Insurers cannot always count on the law to shield them from paying liability claims that arise from a policyholder’s criminal activity, a legal expert told a gathering of carriers’ defense attorneys.
Jay Harris, a partner in Fineman & Bach of Philadelphia, delivered that advice at a New York symposium of the Chicago-based Defense Research Institute.
Mr. Harris spoke on the effect of criminal proceedings on coverage. He counseled his audience that the law can sometimes be murky, urging insurers to pay close attention and to move speedily to fight such claims and to research their background.
The basic legal principle that protects insurers from such claims is that of issue preclusion, known in law as collateral estoppel, he explained. Preclusion bars re-litigating an issue decided at a prior court proceeding.
