When insurance disputes get messy, crossclaims offer a smart legal tool to shift liability, assert rights, and protect your position. Here’s how to draft them effectively.
Insurance litigation often features multiple parties—policyholders, insurers, brokers, and third parties—all pointing fingers. When disputes arise over coverage, claim handling, or liability, crossclaims can help clarify responsibility and shift risk where it belongs.
This article explores the strategic use of crossclaims in insurance disputes, offering practical tips for drafting clear, effective claims that protect your interests.
A crossclaim is a legal claim made by one defendant against another in the same lawsuit. In insurance disputes, crossclaims are often used when:
Two or more insurers dispute coverage responsibilities
A party seeks indemnity or contribution for damages
Claims of bad faith or breach of contract arise between defendants
Example: Insurer A is sued by a policyholder. Insurer A files a crossclaim against Insurer B, arguing that B’s policy provides primary coverage and B must indemnify A.
Common scenarios:
Coverage disputes between insurers
Broker negligence claims
Subrogation-related disputes
Alleged bad faith claim handling
Name the crossclaimant (filing defendant) and the crossclaim defendant (targeted party) precisely.
Example: "ABC Insurance Company crossclaims against XYZ Insurance Company for indemnification and contribution."
State specifically how the crossclaim defendant is responsible:
Breach of contract
Failure to defend
Improper claims denial
Support the crossclaim with solid legal theories:
Breach of insurance contract
Bad faith (where applicable)
Common law indemnity or contribution
Clearly outline your demands:
Indemnification for defense costs and settlements
Contribution toward liability
Declaratory judgment on coverage obligations
Crossclaimant: ABC Insurance Company
Crossclaim Defendant: XYZ Insurance Company
Allegation: XYZ breached its policy obligations by failing to defend and indemnify the policyholder’s claim.
Basis for Liability: XYZ’s policy provided primary coverage for the loss; failure to defend exposed ABC to damages and litigation costs.
Relief Requested: Full indemnification for defense expenses and contribution toward any damages awarded to the policyholder.
Review all insurance policies involved
Confirm which insurer owed a duty to defend or indemnify
Analyze claims-handling conduct for potential bad faith issues
Point to precise policy provisions breached
Cite dates, communications, or claims where misconduct occurred
Avoid vague accusations—courts require specificity
Reference policy language
Cite applicable state laws on coverage duties and bad faith
Align your demands with the facts:
Request full indemnity if another insurer owes primary coverage
Request contribution if liability is shared
Timeliness: File within the court’s crossclaim deadline to avoid dismissal.
Proper Service: Serve the crossclaim correctly on all defendants involved.
Jurisdiction: Confirm the court has authority to hear the crossclaim—especially in multi-insurer, multi-jurisdiction disputes.
In complex insurance disputes, crossclaims are a vital tool to protect your interests, shift liability, and assert your rights. Whether you’re battling a co-insurer over coverage or seeking indemnity after a bad faith claim, a well-crafted crossclaim can make all the difference.
Focus on clarity, specificity, and solid legal grounding to maximize the effectiveness of your crossclaim—and don't underestimate its strategic value during settlement or trial.
Insurance disputes demand precision—and that’s where Legal Husk excels. Whether you’re navigating coverage fights, contribution claims, or complex bad faith allegations, we can help you draft strong, strategic crossclaims that safeguard your interests.
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In insurance disputes, every word counts. Draft your crossclaims with confidence.
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Ready for a court-ready crossclaim at a predictable price? Contact Legal Husk and let us draft your next crossclaim with precision and clarity.
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