Buried treasure may also be found in claims files. A company may have put a carrier on notice of a claim which the carrier denied. Several years later, the company may have come out of pocket hundreds of thousands or even millions of dollars to defend and settle the claim. The carrier may have erroneously denied the claim, or it may have taken an aggressive position not clearly supported by the law. Sometimes, the law may have changed in a way that no longer supports the denial. In such instances, it may be possible to recover some or all of the defense and settlement costs.
For more information on finding buried treasure in your insurance policies, check out this article that I wrote with my law partner, Jim Leonard, that appeared in the Corporate Counselor. If your company has long tail liabilities or regularly faces claims, it is worth the time to consult with coverage counsel. Even if you have a single significant claim that has been denied, you should consider having coverage counsel review the denial.