Virtually all insurance contracts contain a “cooperation clause” among the standard policy provisions. The clause places an affirmative duty on an insured to assist its insurer in the investigation and defense of a claim under the policy. The duty to cooperate is one of the central policy obligations owed by an insured to its insurer, the primary purpose of which is to protect the insurer and prevent collusion between the claimant and insured.
Fulfilling this duty is a condition precedent to coverage, and an insured’s substantial or material breach of this duty puts an end to an insurer’s obligations under the policy. Examples where courts have found a breach of the cooperation clause include an insured’s failure to attend trial, refusal to appear for an examination under oath, and misrepresentation or concealment of material facts from its insurer.
