Insurance Defense
Insurance companies have a lot of money invested in their policies. When someone makes a claim, the company generally wants to reduce their liability. Insurance defense attorneys represent insurance companies and policyholders in liability claims. They can try to avoid liability, lower liability payouts, or negotiate for lower settlement offers. Insurance companies will use insurance defense lawyers for policy claims, including claims covered by insurance in a personal injury or car accident lawsuit.
Insurance laws and insurance regulations can depend on state law. For more information, talk to a local insurance defense attorney.
What Is the Role of Insurance Defense?
Insurance companies offer liability protection for injuries, accidents, and legal claims. The coverage and liability limits are in the terms and conditions of the insurance policy. If someone makes a claim against a policyholder, the insurance company will typically defend its policyholder.
Insurance defense attorneys also represent insurance companies in determining if an insurer needs to pay out a claim. For example, if you exaggerate the losses after a house fire, the insurance company may decline to pay the claim because of insurance fraud.
For example, as a driver, you have car insurance. In a car accident that hurts another driver, they may file a lawsuit against you. Your insurance company covers liability for bodily injuries and property damage claims. In a lawsuit, the insurance defense lawyer will defend you against an injured motorist claim to try and reduce your liability on behalf of the insurance company. They may negotiate with the injured driver to get them to accept a favorable settlement to drop the lawsuit.
Types of Insurance Defense Lawsuits
Any general liability claims with a covered policyholder may involve insurance defense. Some of the most common insurance defense cases involve car and trucking accidents. Other types of insurance defense lawsuits include:
- Medical malpractice
- Premises liability
- Product liability
- Toxic torts
- Wrongful death
- Professional liability
- Workers’ compensation
Do I Need to Hire an Insurance Defense Lawyer After a Car Accident?
As an insurance client, your auto insurance policy should provide for a legal defense involving a covered accident claim. You generally don’t have to hire an attorney yourself if your liability insurance covers the damage claims. When you report an accident, your insurance company will generally handle the claim. This includes injury accident lawsuits.
However, if your insurance company denies your claim, you may need your own attorney. You may be able to resolve your dispute with the insurance company first. Find out about your appeal options when the insurance company denies your claim. You may also be able to resolve the dispute with arbitration or other alternative dispute resolution options.
For insurance claims involving serious injuries or property damage, you may want to hire your own attorney. If there is a dispute with your insurance company, an attorney can represent you to protect your legal rights.
When Does the Insurance Company Deny Your Claim?
The insurance company can deny a claim for many reasons. The most common reason is that the claim is not covered. Insurance policies generally have several exemptions. For example, most homeowner insurance policies do not cover flood damage.
The insurance company may also deny coverage if you have not paid your insurance premiums. Insurance companies generally have grace periods if you are late on payments. However, your insurance company may drop coverage after the grace period for non-payment.
Some insurance claims are denied for fraud. Insurance fraud can involve the policyholder faking an injury. Other fraud involves exaggerating damages or causing an accident to get compensation. An insurance adjuster who suspects insurance fraud may investigate the claim and deny coverage. The insurance company may also report the fraud to law enforcement.
If your claim is denied, you may be able to pursue a bad-faith lawsuit against the insurance company. A bad faith lawsuit alleges that the insurance company acted in bad faith. This means they did not fulfill their contractual obligations.
How Can I Get Legal Advice About Insurance Defense?
Insurance defense lawyers represent the insurance company’s own business interests. Unfortunately, the insurance company’s interests may not match up with your best interests. This can cause problems when the insurance company wrongfully denies a claim. For legal advice about your coverage rights under your insurance policy, talk to an insurance defense lawyer.