Insurance Coverage for Pre-tender Defense Costs State Law Survey

Summary

This survey addresses insurer coverage requirements for "pre-tender defense costs" or those costs incurred by the insured prior to the time that the insurer was placed on notice of the claim. The survey covers all 50 U.S. states and the District of Columbia. In many jurisdictions, insurers are successful in disclaiming obligations to reimburse insureds for pre-tender defense claims in contrast to success in completely disclaiming coverage based on late notice of a claim. In some states, standards between late notice and pre-tender defense coverage costs are diametric, with insurers facing high standards to disclaim coverage based on late notice, with no burden to show prejudice when denying liability for pre-tender defense costs.