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Border Disputes

By Amanda M. Leffler and Lucas M. Blower
November 02, 2015

Hardly any border exists without some sort of dispute. Take the border between the U.S. and Canada, a paradigm of a peaceful, long-established existence. While there may not be many arguments over where Detroit ends and Windsor begins, disputes still exist. For example, both the U.S. and Canada lay claim to Machias Seal Island, which is essentially 20 acres of rocks resting between the Gulf of Maine and the Bay of Fundy. The dispute has gone unresolved for nearly 200 years.

In insurance law, if there is a border as long-established as the one between the U.S. and Canada, it is the border between the two types of coverage provided by liability policies: defense coverage and indemnity coverage. But even along this well-established border, disputes have recently begun to develop.

The Defense-Indemnity Border

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