Insurance Coverage, Submitting and Receiving Tenders: What are tenders, applicable laws, obligations, and examples of tenders use

Richard Dunne | Offit Kurman, P.A.

After working within the insurance industry as a claims analyst with a third-party administer, Richard pursued a law degree and was honored to receive a full merit-based scholarship to Drexel University Thomas R. Kline School of Law where he became a lead editor with the Drexel Law Review. Richard did not intend on re-entering the insurance industry but the opportunity to work in insurance coverage presented itself, and to his surprise, he found himself thoroughly enjoying the work.

Richard appreciates that the insurance industry has a significant impact on public safety and economic stability, and that paradoxically, the insurance industry’s contributions to each are almost exclusively driven by shrewd business initiatives. He believes coverage disputes are representative of this paradox and finds it especially interesting when courts implement sociological jurisprudence to resolve the issue. Insurance law is important to Richard, and he devotes time to learning about the evolution of the industry and stays current with coverage issues.

Richard is an Associate with Offit Kurman P.A.’s Insurance Recovery and Commercial Litigation department. He is licensed to practice in Pennsylvania and New Jersey.

I. What does “tender” actually mean? | 11:00am – 11:15am

• The goal of the “tender” letter
  • Tender is essentially synonymous with notice
  • Obtaining coverage via contractual relationship
• In what context is it most prevalent?
• What information is needed?
• Does timing matter?
• Repercussions for failing to tender

II. To whom should you tender? | 11:15am – 11:30am

• Coverage for additional insureds
• Common policy language creating defense obligations
  • The burden created by the language of the additional insured endorsement – “in whole or in part” vs. “as a result of” (or something similar to that language)
• Difference between the rights of an additional insured vs. a named insured and/or the obligation the insurer has towards the named vs. additional insured
  • Employee liability exclusion – employee of add’l insured vs. named insured

III. Obligations of the party that receives the tender | 11:30am – 11:45am

• Reduced standards for inter-carrier tenders vs. “tender” from the insured (is the party tendering the claim already defending? Or already has a defense?)
• Question of prejudice and possible repercussions resulting in consequential damages, i.e., bad faith practices

IV. Is there any harm in tendering to the wrong entity? | 11:45am – 12:00pm