Archdiocese seeks resolution with insurance companies in suit
People who start or run a business often face a lot of risk. This risk can come organically with the nature of the business, from the misdeeds of those working for the organization or from external factors. In order to minimize the financial impact that a crisis could have on a Minnesota business, many turn to insurance policies to allocate the risk. Their insurance coverage helps ensure that they will be able to pay for an issue — should it arise — without financially ruining the company.
The Archdiocese of St. Paul and Minneapolis recently sued multiple insurance companies to ensure that it will have coverage. The Archdiocese has been embroiled in a sex-abuse scandal. As it settles these disputes, the Archdiocese wants to make sure that its insurance companies will pick up some or all of the costs of settlement.
In particular, the Church wants to ensure coverage for a broad settlement with multiple parties. In the past, insurance companies have paid for claims made against the Archdiocese. In this situation, the Church is facing more than two dozen claims from sex-abuse victims.
In total, the Archdiocese has brought a federal case against 20 insurance companies. Representatives from the Archdiocese have claimed that while the insurance companies have not down-right refused to pay, they need some help coming to a resolution on issues.
When businesses and organizations — like the Archdiocese — have potential insurance issues, they need to know that their insurance companies will provide the coverage they have paid for. If issues arise, alternative dispute resolution methods or legal action can prove helpful in reaching a resolution. Therefore, if businesses face issues with their insurance providers, they should make sure to understand all their legal rights.