If you are an insurance buyer, you may be familiar with the word ‘insurance defense,’ but if you’re not, worry less. Insurance defense is the legal practice and methods used by insurance companies to defend their interests when policyholders are the target of litigation or liability claims. The insurance products sold by most insurance companies have a lot of money invested in them. So if a policyholder faces a lawsuit or claims, insurance defense comes to the rescue.
Insurance defense covers a vast array of situations, such as coverage issues, property damage disagreements, and liability claims. This particular field of law focuses on defending against third-party claims, making sure the insurer complies with the terms of the policy, and, at the same time, reducing possible financial damages.
In this article, we will provide detailed and comprehensive information about this concept, providing insights on how it works and other useful tips. Ensure you read to the end in order not to miss out on valid information.
How Does it Work?
Most insurance companies provide a variety of coverage as required by the policyholder. They also offer liability protection in the event of accidents, inquiries, or legal claims the policyholder makes. When someone makes a claim or files a lawsuit against the policyholder, the insurance company is responsible for defending the policyholder.
Nevertheless, it is important to note that there are cases where your insurance provider may deny your claim. Most insurance companies hire professional defense attorneys who will assess your claims and determine whether the company needs to offer a payout or not. For instance, if your house was damaged due to a fire accident. And you exaggerate the loss or damage incurred on your claim, it may be denied by the insurer.
Type of Insurance Defense Lawsuit
Car accidents are typically the most common type of claims that need insurance defense. Notwithstanding, other liability claims need insurance defense, provided it is covered by your insurance policy. Enumerated below are the types of insurance defense lawsuits:
- Wrongful death.
- Medical malpractice.
- Worker’s compensation.
- Property damage.
- Toxic torts.
- Product liability.
- Fraudulent claims.
- Premises liability.
- Professional liability.
Do I Need to Hire an Insurance Defense Lawyer If I Get Into a Car Accident?
Generally speaking, if you are involved in a car accident, your car insurance policy should be able to cater to legal defense as long as it is a covered claim. Your insurance company is responsible for hiring an insurance defense lawyer for your case. Remember, this is contingent on whether your auto insurance covers the accident claim. When you file a claim for a covered accident, the insurer will be the one to manage the claims and take necessary steps if there is a lawsuit involved.
On the other hand, if your claim was denied by your insurance company, then you can hire an insurance defense lawyer for yourself. It is possible to resolve the disagreements with your coverage provider first and then proceed with the defense lawyer to work on your case.
If your claim involves property damage or severe injuries, it is advisable to hire your defense lawyer who can help in defending your claim and protect your legal rights.
When Does an Insurance Company Deny Claims for Insurance Defense?
There are several reasons why most insurance companies deny claims made by policyholders. One of the primary reasons why your claim may be denied is that it is not covered under the policy you purchased. If you file a claim that is not covered by your policy, your insurance company will most likely not provide coverage.
Another reason why coverage may also be denied is if the policyholder defaults on his premium payments. Certain companies offer grace periods for those who are unable to meet up with the date of payment. Once the grace period is over, the coverage will not be active until you pay your insurance premiums.
Furthermore, your insurance company may deny your claims if they identify fraudulent activities. Let’s say the policyholder fakes an injury or exaggerates a loss, and the insurance company finds out through the adjuster sent to investigate the claim; it would automatically lead to denial of coverage. Worse comes to worst, the insurance company can take it up by reporting you to the law enforcement authorities.
Nonetheless, it is essential to always read the fine print of your insurance policy and know what it covers, including the limitations. This would give you a better idea of instances where your claims are covered and when it may be denied. If you seek supplementary coverage, reach out to your insurance company.
How Can I Get Legal Advice About Insurance Defense?
To get legal advice regarding insurance defense, speak with an experienced lawyer who specializes in defense litigation or insurance law. You can also look through local legal directories. Or law firms to locate experts who have dealt with insurance-related disputes before. A lot of lawyers provide free initial consultations so you can talk to them about your particular case and get advice that is specific to you.
In addition, you can ask for recommendations from coworkers. Or acquaintances in the field who have dealt with related problems in the past. Always make sure the attorney you choose is well-versed in the coverage defense so they can successfully handle your legal demands.
Conclusion
Insurance and legal sectors depend heavily on insurance defense, which offers crucial security to both insurers and policyholders. Insurance defense lawyers are essential in maintaining the provisions of insurance policies and making sure that claims are handled properly. Knowing the ins and outs of insurance defense not only helps insurers reduce financial risk but also gives policyholders a better understanding of their rights and obligations.
