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A policyholder sued its property insurer for denial of physical damage that was allegedly caused by a contractor.

The policyholder also sued the contractor, who is being defended by its general liability insurer, subject to reservation of rights.

The policyholder wants to give priority to the litigation against the contractor but concerned that the first party property insurer may contend that its subrogation rights were violated by the lawsuit. My take is that such concern is not warranted because subrogation rights are limited to the extent loss payment is made.

Any differing views?

IRCOS, LLC wrote:A policyholder sued its property insurer for denial of physical damage that was allegedly caused by a contractor.

What basis did the insurance company give for denying the claim?

No coverage under the policy for the loss.