Chapter 18 — Insurance Coverage Issues
Overview of Insurance in Dram Shop Defense Enhanced
The 2025 Raoger decision significantly impacts insurance coverage analysis in dram shop cases. The heightened evidentiary standards make certain claims more defensible, potentially affecting coverage decisions, settlement strategies, and policy language interpretation.
Impact of Raoger on Coverage Analysis
1. Claim Evaluation Enhanced
- Early Assessment: Raoger enables earlier evaluation of claim viability based on observational evidence availability
- Coverage Decisions: Insurers can make more confident coverage decisions when direct evidence is lacking
- Settlement Leverage: Enhanced defense position affects settlement authority and strategy
Policy Language Considerations:
- “Apparent Intoxication” Clauses: Policy language may need interpretation under Raoger standards
- Expert Witness Provisions: Coverage for expert witness costs may be affected by reliability standards
- Defense Cost Management: Stronger defense positions may affect allocation of defense resources