Equitable estoppel cannot establish coverage under a policy where none exists.

Where an insurer provides a defense without reserving its right to deny coverage, the insurer may be collaterally estopped from denying such coverage later in the case. However, such estoppel is premised upon a showing of detrimental reliance suffered by the insured. Thus, estoppel is only warranted where the insured can illustrate that it was prejudiced by the insurer's actions.

Case Law Alert - 3rd Qtr 2011