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 New Jersey, insurance coverage disputes between an insurer and the insured can occur when there is disagreement over whether a policy covers a specific loss, such as theft or fire, 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 still later contend that the policy does not cover the claim. New Jersey law requires insurance policies to be clear and any ambiguities are typically interpreted in favor of the insured. The state follows the 'reasonable expectations' doctrine, meaning that the coverage an average policyholder would reasonably expect is often given weight in legal disputes. However, the specifics of each case can vary greatly, and the interpretation of insurance contracts can be complex. Therefore, it is advisable for individuals or businesses involved in such disputes to consult with an attorney who specializes in insurance coverage to navigate the intricacies of these issues and to advocate for their interests effectively.