If an insurance company improperly denies coverage under its policy, you can sue the insurance company. Minnesota law gives you the right to attorney’s fees if you win.
You have insurance to cover you in case of accidents. Imagine you had an accident that involved $20,000, and you had to spend $50,000 in legal fees to force the insurance company to pay under its policy. Would that be fair? No. Fortunately, Minnesota allows insured parties (people who buy insurance) to recover their attorney’s fees if insurance companies refuse to pay as required under the insurance policy.
In 1966, the Minnesota Supreme Court made this clear: “[An insured] ought to be permitted to recover whatever expenses he has been compelled to incur in asserting his rights” when an insurance company improperly denies coverage.” See Morrison v. Swenson, 142 N.W.2d 640 (Minn. 1966); See also Minn. Stat. § 604.18 subdiv. 3(2). For a detailed history, see this law review article.
In general, if you lose, and the court determines you are not entitled to coverage under the insurance policy, you have no right to recover your attorney’s fees from the insurance company. However, some courts have ruled otherwise.
This was written by attorney Aaron Hall.