Insurance Defense Costs: Allocation in Mixed Actions, Recoupment for Non-Covered Claims, Independent Counsel Fees
Maximizing Recovery or Limiting Exposure for Defense Costs

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Insurance
- event Date
Friday, May 30, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will discuss defense cost coverage issues, including allocating costs in mixed actions, the insurer's right to recoup defense costs for non-covered claims, the insurer's obligation to pay defense fees for insured's independent counsel, and the insurer's right to limit reimbursement through billing and litigation management guidelines.
Faculty

Ms. Michael has over 20 years’ experience in complex commercial litigation, with emphasis on insurance coverage disputes. She has handled high-stakes cases in a wide variety of coverage areas including products liability, intellectual property claims, construction defect claims, and numerous others. Ms. Michael also has substantial experience in class action practice.

Mr. Brinkman is a partner in Blank Rome’s policyholder-only insurance recovery practice. He helps companies and their directors and officers understand and obtain payment from their insurance coverage—from preemptive analysis of coverage for potential risks, to claim advocacy and negotiation, through alternative dispute resolution and litigation.

Mr. Gridley represents insurers in complex litigation involving professional liability, general liability, and property insurance coverage. He provides advice and counsel on a wide range of insurance issues, including transactional liability, director and officer liability, legal malpractice and other errors and omissions claims, environmental liability, bodily injury and property damage claims, bankruptcy, technology, emerging issues, and bad faith.
Description
The insurer's duty to pay defense costs is frequently subject to dispute and litigation. One of the most commonly disputed issues includes the insurer's extra-contractual right to recoup defense costs for underlying claims that are ultimately determined to not be covered. When the insurer has a duty to "advance" rather than defend, issues arise over when costs have to be paid.
And, the long-running coverage battle persists between insurance companies and policyholders on the allocation of defense costs between covered and uncovered claims and parties.
Other disputed issues include the insured's right to reimbursement for defense costs incurred by retaining independent defense counsel and the insurer's right to limit reimbursement through billing and litigation management guidelines.
Listen as our authoritative panel of insurance practitioners guides you through recent trends involving coverage for and recoupment of defense costs. The panel will discuss recent case law, as well as arguments for both policyholders' and insurers' positions regarding these issues and best practices for resolving disputes regarding these issues.
Outline
- Extra-contractual recoupment of defense costs by insurer
- Claims in underlying litigation ultimately found not covered
- Covered vs. non-covered claims or parties
- Allocation of defense costs
- Independent counsel paid for by insurer
- Reservation of rights
- Conflicts of interest
- Other scenarios
- Compliance with billing and litigation management guidelines
Benefits
The panel will review these and other key issues:
- What is the insurer's right, if any, to apportion or allocate defense costs incurred by the insured in a "mixed action?"
- What are best practices for allocating defense costs among covered and uncovered claims or parties?
- What legal rationale best supports the insurer's right to reimbursement of defense costs for uncovered claims?
- Under what circumstances must the insurer cover the defense fees incurred by independent counsel retained by the policyholder?
Related Courses

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Tuesday, April 22, 2025
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Insurance Bad Faith Litigation: Strategies and Practical Tools to Successfully Resist Entry of Protective Orders
Friday, April 25, 2025
1:00 p.m. ET./10:00 a.m. PT
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