Liability insurance protects individuals and businesses when faced with a lawsuit arising from another’s injury or damaged property. Liability insurance covers not only the amount of any judgment entered against an insured should they be held liable, but also pays for the costs associated with defending the lawsuit. These costs include attorneys’ fees, experts and other expenses associated with your defense.
Often, your insurance company, when defending you in a claim made by others, may issue a “reservation of rights” letter. This letter typically advises you to obtain your own counsel as the insurance company will initially provide a defense,but reserves the right to withdraw a defense at a later date or not pay some or all of a judgment ultimately entered against you. In these situations it is important to hire your own attorney. The lawyer assigned by the insurance company represents you in the lawsuit filed against you, but not in any potential dispute with your insurance company over the benefits you are entitled to receive.
Liability insurance claims involve unique coverage issues and impose upon the insurer a fiduciary duty to protect the insured’s interests. Our firm has extensive experience in successfully presenting and litigating liability coverage claims, for both individuals and businesses, to ensure our clients get the protection they purchased. Once a claim is accepted, and the insurance company begins providing a defense, our firm stays actively involved in your case to ensure that they are protecting your interests, rather than their own.
As soon as you learn of a claim that may be brought against you or your business it is crucial to notify your insurance company. If you are faced with a lawsuit and have questions concerning your liability insurance coverage, or how your insurance company is handling your claim, please do not hesitate to contact us for a free consultation.