When Can Recovery from Insurers Exceed Policy Limits?

Many jurisdictions permit a policyholder, on the right facts, to recover damages exceeding its policy limits for an insurer’s breach of its duty of good faith and fair dealing. The Nevada Supreme Court recently went one step further and held that when an insurer breaches its duty to defend, the policyholder may be, under certain circumstances, able to recover consequential damages from the insurer exceeding the policy limits.