Last month, the Wisconsin Supreme Court ruled that West Bend Mutual Insurance Co. was required to defend a medical supply wholesaler in a lawsuit alleging it sold “gray market” versions of Abbott Laboratories’ diabetes test strips. The Court found that even though Abbott alleged that the wholesaler had acted in an intentional manner, the insurance policy could not escape its “duty to defend” where other claims alleged were covered by the wholesaler’s insurance policy.
This is an important decision for wholesalers and other health care companies who may find themselves involved litigations or arbitrations. An insurance company may not withhold coverage from its beneficiaries if the lawsuit is still partially covered under the terms of the insurance policy, preventing insurance companies from denying coverage in potentially expensive litigation matters.
Frier Levitt has extensive experience representing healthcare providers and other entities in the healthcare marketplace. If you or your company is involved in a litigation or arbitration you should carefully scrutinize your insurance coverage and not immediately accept your insurance company’s denial of cover. If you believe your insurance company wrongfully denied your request to cover litigation costs or want to learn more, contact Frier Levitt today to speak to an attorney.