America 250: The Nation’s Unique Contributions to Insurance Coverage Law and Litigation
Insights for Insurers Alert | 9 min read
Sep 16, 2026
America’s 250th anniversary serves as an appropriate occasion to celebrate the nation’s unique role in the development of insurance law and coverage litigation, as discussed in the following analysis.* Insurance was not invented or perfected in America, but America has placed its unique imprimatur on insurance coverage law and litigation.
The Critical Role of Insurance and Insurers in Society and the US Economy
Though popular scapegoats and common targets for criticism, insurers have contributed mightily to the economic success, stability, and endurance of our country. Indeed, insurers have contributed to American society and the economy in a variety of ways that extend far beyond issuing insurance policies.
The contribution of insurers to American society and the economy is immeasurable:
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- Marine insurers underwrote the United States by shouldering the financial risks of the war for American independence.
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- Through risk assessment and loss control services, insurers save lives, prevent injuries, and preserve property.
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- Insurers are responsible for a variety of standards, including fire safety standards, stronger building codes, and forest management standards to reduce wildfire risks.
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- By championing preventative health, insurers reduce the incidence of preventable diseases. Similarly, in the digital age, insurer underwriting and loss control services assist policyholders in preventing and minimizing cyber losses.
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- Insurers are major institutional investors, supporting corporate issuers, capital markets, and the nation’s infrastructure. Insurer capital can be found in the Hoover Dam, the Golden Gate Bridge, and the St. Lawrence Seaway, among so many other landmarks.
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- Insurance has been critical for helping communities by rebuilding homes and properties after disasters.
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- Insurance fosters economic growth and serves as a backstop for invention and investment.
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- Without insurance, airlines would be reluctant to bear the risk of flight, ships may not sail, people would drive less, builders would not break ground on many construction projects, doctors would not perform high-risk procedures, and pharmaceutical and technology companies would not take the risks associated with developing drugs, vaccines, and medical devices.
Simply stated, without insurance, the availability of products and services would be greatly reduced in both quantity and variety. Recent developments in the Straits of Hormuz serve as a reminder of the critical role of insurance.
What Fueled the “Golden Ages” of the Insurance Coverage Litigation Wars
The potential for coverage litigation exists whenever an insurer denies a policyholder’s claim for coverage. Yet, for most of recorded world history, coverage litigation was uncommon.
Most individual and corporate policyholder disputes were resolved amicably. When coverage was litigated, the disputes generally were not particularly complex, did not involve many issues or parties, and rarely warranted high-priced legal talent.
America’s Unique Contributions to Insurance Law and Coverage Litigation
Broadly speaking, most of the world of insurance coverage disputes fall under three general buckets: “duty to defend,” “duty to indemnify,” and “bad faith and extra-contractual liability.”
Two of these three buckets—“duty to defend” and “bad faith and extra-contractual liability—are creatures of American law. Another contribution is litigation American-style, replete with social inflation, nuclear verdicts, and rising defense and claims-resolution costs.
*This article is based upon a Law360 “Expert Analysis” written by Scott Seaman, Pedro Hernandez, and Peter Lewis, “Notable Contributions From 250 Years Of US Insurance Law,” Law360 (June 30, 2026).

Access the America 250 Book

Authored by Hinshaw partners Scott Seaman, Pedro Hernandez, and Peter Lewis, their book, America 250: A History of Insurance and Insurance Coverage Law and Litigation in the United States, examines the critical role of insurance, one of the nation’s most influential—yet often overlooked–economic institutions.
The book describes the important role and history of insurance in the United States, provides insights into the “Golden Ages” of the insurance coverage wars, unpacks modern insurance coverage disputes, and much more.
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