Insurance Law: It's Difficult For Policyholders To Recover Attorney Fees In Insurance Litigation

, The Connecticut Law Tribune

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On the other hand, policyholders are less likely to pursue a claim without an assurance that they can recover the out-of-pocket expenses incurred in a successful challenge of an insurer's denial of coverage. This is especially so with respect to smaller insurance claims, when the cost to pursue the claim might exceed the amount of the claim itself. Therefore, policyholders would argue that they should be entitled to recover attorney fees, because this is the only way in which a policyholder can be made whole when an insurer has wrongfully denied coverage.•

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