Insurance policies that include liability coverage are an important part of your defense if sued over a personal injury or defamation. The carrier has a contractual duty to defend you as their client. However, this is not a blanket requirement. If your insurance company may be involved in your defense, it's important to understand how it works. Here are a few key things to know.
What Is the Duty to Defend?
When you purchase an insurance policy with liability provisions, the carrier must act in your best interests when you make a claim. Part of these interests is to defend your case if it goes to trial. The amount of such assistance and what it includes depend on the language of the specific policy.
In general, the duty to defend means the insurer selects and engages or reimburses the client for legal representation against claims. And the carrier must provide proper defense representation — not just hiring a hack who is inexpensive.
What Are the Limits of This Duty?
Of course, insurers don't want to perform this duty if they don't have to. The first obstacle is generally meeting the requirements for a valid claim.
Rules vary by policy, but they include a few key points. You must provide notice of the claim within the required period, which may be quite short. You generally must also not have acted intentionally to cause the accident. And finally, the claim and its damages must be within the scope of the policy.
Many insurers test these parameters to make sure they must pay out. They may start a defense on contingency, for example, if they suspect that you acted intentionally. If they can prove this, the claim may be denied any further.
Why Might You Need Other Representation?
If you have insurance coverage that includes legal representation, make sure that it's in your best interests.
Remember, the carrier's motivations are financial. They want to deny or reduce the costs of your claim as much as possible. You may need your own independent counsel to ensure that the insurer chooses the best legal assistance and that they don't deny your claim for unfair reasons.
You may also be able to select your own legal team, depending on the policy. This is an important right because you deserve to feel confident in your legal representation.
Finally, you may need outside attorneys if the insurer does deem that your claim doesn't qualify for their duty to defend. They can either fight for you with the insurance carrier or defend your case.
Where to Learn More
The duty to defend by an insurance company can be a significant benefit. But it doesn't come without its own complexity. Start by learning more about your rights and responsibilities. No matter how your claim progresses, you'll be more confident that you have the best chance possible. To learn more, contact a personal injury lawyer in your area.
