Insurance coverage (and the related litigation) generally involves a dispute between an insurance company (insurer) and its policyholder (insured) regarding whether a loss suffered by the insured is covered by the insurance policy issued by the insurer.

Such coverage disputes may arise after the insured suffers a loss due to theft, fire, or other event—or when an insured (person or business) is served with a lawsuit and requests the insurer defend the insured in the lawsuit, but the insurer denies coverage or only agrees to defend the lawsuit under a reservation of rights (ROR).

Insurance contracts and insurance coverage issues are often complex and an insured is often well-served by promptly discussing these matters with an experienced insurance coverage lawyer.

In California, insurance coverage disputes typically involve disagreements between the insurer and the insured about whether a particular loss is covered under the terms of the insurance policy. These disputes can occur in various situations, such as after the insured experiences a loss from theft, fire, or another covered event, or when the insured is sued and seeks defense from the insurer. If the insurer denies coverage or agrees to defend under a reservation of rights (ROR), it means the insurer may later contest its obligation to cover the loss or defense costs. California law requires insurance policies to be clear and places the burden on insurers to draft policies that are not ambiguous. When interpreting insurance policies, courts in California generally resolve ambiguities in favor of coverage. Additionally, California has regulations that govern unfair insurance practices, which can impact litigation. Due to the complexity of insurance contracts and the nuances of insurance law, it is often advisable for an insured to consult with an experienced attorney to navigate these disputes and to ensure their rights are protected.