Insurance Policy Ambiguity

In most jurisdictions, if there are two or more reasonable interpretations of an insurance policy provision, then that policy provision is considered ambiguous. So, in most cases, the Courts are bound to find in favor of coverage for the policyholder if a policy term is ambiguous. This means that a lot can ride on whether or not an insurance policy provision is found to be ambiguous.

Despite the widespread use of form policies, seldom are two policies written identical. This is because there are always endorsements attached in a variety of configurations that can appear to impact the clarity of some of the insurance policy terms. While there are many factors impacting the determination of ambiguity, the variety and language of endorsements often makes the question of whether or not a policy provision is ambiguous a significant challenge. Because of their unique background experience, our principals are very accomplished at identifying the existence or absence of ambiguity in insurance policies.