Insurance
Jun. 27, 2019
Trade usage overlooked in insurance policy interpretation
Insurance policies are full of phrases and terms that might have one “ordinary and popular” meaning but a completely different meaning in the insured’s specialized industry. In these scenarios, overlooking trade usage can result in insureds not advocating for the full scope of their coverage or, worse yet, accepting an insurer’s wrongful denial of coverage.
Michael S. Gehrt
Partner
Pasich LLP
Email: mgehrt@pasichllp.com
Michael represents insureds in complex insurance coverage matters.
When interpreting terms or phrases in insurance policies, courts and commentators often repeat the established maxim that "the words of a contract are to be understood in their ordinary and popular sense." However, focusing exclusively on this maxim overlooks a crucial -- and often neglected -- component of policy interpretation: trade usage.
Insurance policies are full of phrases and terms that might have one "ordinary and popular"...
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