Reading, understanding and interpreting an insurance policy can get pretty complicated. Coverage, exclusions, definitions, notice requirements, time limits – every provision of a policy can be subject to dispute between a policyholder and its insurer.
But as demonstrated by the decisions in this edition of the newsletter, courts interpret these insurance contracts with a focus on basic contract interpretation principles – reading the policy as a whole, examining whether the language is ambiguous, and asking whether the outcome was reasonably intended by the parties. When the courts do this, application of these basic contract interpretation principles results in favor of coverage for the policyholders.
The cases thus reiterate that when pursuing claims against an insurer, policyholders should not forget the importance of relying upon these fundamental principles.