“An insured owes an obligation to cooperate with its insurer. Generally, this duty to cooperate flows from a specific provision in the insurance contract, usually referred to as the ‘cooperation clause.’” However, even if the duty to cooperate is not expressly set forth in the policy, it is an implied condition precedent to coverage.

From the insurance company’s standpoint, the cooperation clause serves to assist the insurance company to (i) obtain information concerning a loss while the information is still fresh; (ii) determine its obligations to indemnify the loss and/or defend its insured; (iii) protect itself from fraudulent claims; and (iv) pursue a subrogation claim against a responsible third-party, if applicable. Where a third-party claimant is involved, the cooperation clause also serves to prevent collusion between the policyholder and the claimant.