THE OKLAHOMA BAR JOURNAL 26 | AUGUST 2026 Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff. such as Irrevocable Life Insurance Trusts (ILITs) for removing proceeds from the taxable estate and for avoiding probate by passing proceeds directly to named beneficiaries. Mistakes with such products can trigger unintended taxes, disputes or delay in probate, none of which benefit the practitioner’s business model. BUSINESS LAW AND RELATED INSURANCE COVERAGE Similarly, the business law attorney may be called upon to assist the client with evaluating and/or accessing a variety of insurance coverages. For instance, your clients need to understand that their own faulty work is not ordinarily insurable20 (that is more the purpose of performance and maintenance bonds). The exception is where the faulty work causes damage to other property or causes physical injury to a person.21 So if your contractor client is sued for installing a bad roof, the contractor’s liability insurer will not defend that claim or pay a settlement or judgment unless as a result of the faulty work some other damages are alleged such as water damage inside the home or the roof collapsing and injuring the family dog. Many business owners are surprised at this result because they thought they were buying coverage to bail them out if they happen to be sued for alleged faulty workmanship. We do not want their lawyer to also be surprised. It is also important that such clients understand “completed operations” coverage which extends coverage to otherwise covered damage occurring after the project’s completion (again, this does not refer to repair of the faulty work but only to payment for additional damage resulting from the defective work).22 If completed operations are excluded from the coverage, then only claims arising while the contractor is still performing the work will be covered. Obviously, that timeframe covers only a small portion of the contractor’s risk. Business law practitioners (all practitioners, really) should also be aware of the possibility of suing the insurance agent for failing to procure coverage as requested or even suing the insurer for reformation if the agent has misled the insured into thinking that business risks (or some other risks) were covered by the policy. Additionally, such practitioners should be conversant in topics such as certificates of insurance, additional insured status, indemnification and risk transfer through insurance products, as all these insurance concepts, and many more will affect your business clients. EMPLOYMENT LAWYERS AS INSURANCE LAWYERS Workers’ compensation coverage is mandatory in Oklahoma for most employers.23 The employment lawyer is aware of that requirement and so advises the client. Likewise, ERISA governs many employer-sponsored programs for life, health, and disability insurance coverages. As every employment lawyer well knows, ERISA law is a complex specialty area. ERISA occasionally also affects other practice areas (it often comes up in the context of a subrogation claim in a personal injury matter) so it can be useful to at least know an ERISA specialist with whom to confer. This is but a small fraction covered by this particular “intersection,” but again, space and knowledge constraints dictate that we move on. REAL ESTATE ALSO RELIES HEAVILY UPON INSURANCE LAW The real estate lawyer must be familiar with the intricacies of title insurance to protect against unknown defects, liens and encumbrances as well as with the basics of property insurance, builders’ risk, and rental interruption coverages. They must also be aware of how such coverage interacts with closing documents, leases and other contracts, and land development projects.24 We could devote an entire article to this practice area as well, but must keep moving. TAX LAW TOO Some insurance proceeds that replace income (such as business interruption coverage) may be taxable while most insurance proceeds that make the insured whole for an actual loss are not taxable. This second category includes life insurance benefits, property damage coverage, and even personal injury damages (even the income replacement component of an insurance payment for personal injury is typically nontaxable25) so hopefully we will see all of you tax lawyers at our next insurance law seminar as well. LET’S NOT FORGET OUR OIL AND GAS LAWYERS Insurance coverage problems are always at the forefront of oil and gas injury disputes. Indeed, as seen in the case law, the insurance carriers writing coverage for oil operations seem to have mastered the art of writing coverage (for oilfield personal injury or pollution damage, for instance) that just barely exceeds the minimum for avoiding the label “illusory coverage.”26 Attorneys advising energy
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