Insurance coverage (and the related litigation) generally involves a dispute between an insurance company (insurer) and its policyholder (insured) regarding whether a loss suffered by the insured is covered by the insurance policy issued by the insurer.

Such coverage disputes may arise after the insured suffers a loss due to theft, fire, or other event—or when an insured (person or business) is served with a lawsuit and requests the insurer defend the insured in the lawsuit, but the insurer denies coverage or only agrees to defend the lawsuit under a reservation of rights (ROR).

Insurance contracts and insurance coverage issues are often complex and an insured is often well-served by promptly discussing these matters with an experienced insurance coverage lawyer.

In North Carolina, insurance coverage disputes typically involve disagreements between an insurer and the insured over whether a particular loss is covered under the terms of the insurance policy. These disputes can occur in various situations, such as after the insured experiences a loss from theft, fire, or another covered event, or when the insured is named in a lawsuit and seeks defense from the insurer. The insurer may deny the claim, offer partial coverage, or agree to defend under a reservation of rights (ROR), which allows the insurer to provide a defense while still reserving the right to deny coverage later based on the outcome of the case or further investigation. Insurance policies are legally binding contracts, and their interpretation can be complex, involving detailed analysis of policy language, exclusions, and endorsements. In North Carolina, as in other states, the specifics of insurance law are governed by both state statutes and case law. When facing a coverage dispute, it is advisable for the insured to consult with an attorney who specializes in insurance law to navigate the complexities of the policy and advocate for their rights under the contract.