Disclaimer: The information contained herein is solely for educational purposes. It is not legal advice or legal authority and reflects the author’s interpretation of insurance litigation in Nebraska.
Insurance is designed to provide financial protection when the unexpected happens. However, disputes over coverage, claim denials, policy interpretation, or alleged bad-faith practices can arise when policyholders and insurance companies disagree.
Whether you are an individual, business owner, or insurance carrier, understanding how insurance litigation works in Nebraska can help you protect your legal rights and resolve disputes more effectively.
What Is Insurance Litigation?
Insurance litigation refers to legal disputes between policyholders and insurance companies regarding the interpretation, enforcement, or application of an insurance policy.
Common types of insurance disputes include:
- Denied Claims: When an insurance company refuses to pay a claim the policyholder believes is covered.
- Coverage Disputes: Disagreements over whether a particular loss or event falls within the policy’s coverage.
- Bad Faith Claims: Allegations that an insurer acted unreasonably by delaying payment, failing to investigate properly, or wrongfully denying benefits.
- Subrogation Actions: Claims in which an insurer seeks reimbursement from a third party responsible for the policyholder’s loss.
In Nebraska, insurance litigation is governed by state law, the language of the insurance policy, and, in some cases, applicable federal statutes.
Common Causes of Insurance Disputes in Nebraska
Property and Casualty Claims
Homeowners, renters, landlords, and commercial property owners frequently encounter disputes involving:
- Property damage
- Coverage limits
- Policy exclusions
- Claim valuation
Auto Insurance Claims
Motor vehicle insurance disputes often involve:
- Collision damage
- Liability coverage
- Underinsured or uninsured motorist claims
- Total-loss vehicle valuations
Health Insurance and ERISA Matters
Coverage disputes involving health insurance may arise from:
- Denied medical treatments
- Delayed payments
- Policy interpretation
- Employer-sponsored health plans governed by ERISA
Business and Commercial Insurance Policies
Businesses may experience disputes involving:
- Business interruption claims
- Commercial property damage
- General liability coverage
- Professional liability insurance
The Insurance Litigation Process
Whether representing a policyholder or an insurance company, most insurance litigation follows a similar process.
1. Initial Investigation
The parties investigate the claim, review the insurance policy, evaluate the facts, and exchange information regarding coverage or denial.
2. Pre-Litigation Negotiation
Many disputes are resolved through negotiations or mediation before a lawsuit is filed.
Attempting to resolve the matter early can save both time and legal expenses.
3. Filing a Lawsuit
If negotiations fail, the policyholder may file a lawsuit in Nebraska state court.
The insurance company responds by filing an answer and may assert legal defenses or counterclaims.
4. Discovery
During discovery, both sides gather evidence by exchanging documents, conducting depositions, and requesting additional information relevant to the dispute.
5. Motion Practice and Settlement Discussions
The court may hear motions involving legal issues before trial, while the parties often continue negotiating toward a possible settlement.
Many insurance disputes are resolved before reaching trial.
6. Trial or Alternative Dispute Resolution
If settlement cannot be reached, the dispute proceeds to trial where a judge or jury determines the outcome.
Some cases may instead be resolved through mediation or binding arbitration.
Tips for Policyholders
If you are involved in an insurance dispute, consider these best practices:
- Keep detailed records of communications, damages, receipts, and claim documentation.
- Carefully review your insurance policy, including exclusions and reporting requirements.
- File claims promptly and respond to requests for additional information within required deadlines.
- Consult an experienced Nebraska attorney early to evaluate your legal options.
Tips for Insurance Companies
Insurance carriers can reduce litigation risk by:
- Conducting objective and thorough claim investigations.
- Maintaining clear, timely communication with policyholders.
- Considering mediation when appropriate to resolve disputes efficiently.
- Staying informed about changes in Nebraska insurance law and court decisions.
Why Legal Guidance Matters
Insurance litigation often involves complex policy language, statutory requirements, and procedural rules.
An experienced Nebraska insurance litigation attorney can help:
- Interpret insurance policy provisions.
- Evaluate potential coverage issues.
- Assess bad-faith claims or legal defenses.
- Represent clients during negotiations, mediation, arbitration, or trial.
- Ensure compliance with legal deadlines and court procedures.
Final Thoughts
Insurance disputes can be stressful, time-consuming, and financially significant for both policyholders and insurance companies.
Whether you are seeking compensation under your policy or defending against a disputed claim, obtaining experienced legal guidance early in the process can help protect your interests and improve the likelihood of a successful resolution.
Understanding your rights—and acting promptly—can make all the difference when navigating an insurance dispute.
About the Author
Travis M. Jacott
Adams & Sullivan, PC, LLO
Travis M. Jacott joined Adams & Sullivan in 2015. His practice focuses on litigation, real estate development and transactions, municipal law, and estate planning. He has represented clients in matters before Nebraska state courts, the U.S. District Court for the District of Nebraska, and the Eighth Circuit Court of Appeals. A Sarpy County native, Travis earned his bachelor’s degree from the University of Nebraska–Omaha and his law degree from Creighton University School of Law before being admitted to practice law in Nebraska.