Working with Your Insurer on Your Case
Working as the defense counsel with an insurance company, attorneys must have a clear knowledge of the reporting parties of the case. The policyholder is the client, while the insurance company is in charge of the finances and accounting. Civil Insurer Defense is a closely managed, cost-control operation with the goal of minimizing the risk and financial exposure of both the insurance company and the policyholder, based on the Duty to Defend and Duty to Indemnify.
Our firm works hand-in-hand with our client and the insurance company to assess the liability of the claim, the policy coverage and limits, and then makes a clear decision on how to proceed based on exhaustive investigation and analysis.
Risk Mitigation Goals of Insurance Defense:
- Lower Financial Exposure
- Lower Legal Liability
- Lower Reputational Damage
Constant consideration is paid to the economic feasibility of fighting a claim at trial versus negotiating an early, favorable settlement.
Duty to Defend
When a suit is filed, the insurer immediately is under obligation to defend the policyholder no matter how strong or weak or even groundless the case may be. Upon receipt of the claim, the insurer determines if the allegations are potentially or arguably covered by the policy held. Even if only one part of a multi-claim filed is covered under the policy, the insurer is required to immediately provide a defense. Once we are hired to represent the claim on behalf of the plaintiff, who is the policyholder, we work with your insurance company to keep in written and electronic communication about budgeting, settlement valuation, reserves, and legal strategy approvals. As your insurance company handles the financial aspects to settle your claim, it is important that we work hand-in-hand in order to achieve a favorable outcome for all parties involved.
Duty to Indemnify
There is a financial duty of the insurance company to pay the final monetary judgment, verdict, or agreed-upon settlement according to the policy limits of the policyholder. This duty to indemnify has a more narrow definition, as it takes into account the actual legality or legitimacy of the claim and its outcome. This means that actual liability has been legally established by the presentation of admissible evidence, a court judgment, or the insurer has consented and agreed to a set settlement. After being legally required to spend the time, money, and effort defending the policyholder, the insurance company determines whether or not the claim is viable based on the final judgment. If it did not fall under a policy exclusion, or even worse, the insured was found not liable, then the insurance company is financially obligated to pay.
Compliance with Strict Bad-Faith Insurance Laws
The duty of good faith and fair dealing are vital to Insurance Defense in the state of Louisiana when defending against a civil claim. It is the defense attorney’s job to ensure that the insurance company fulfills its contractual and statutory obligations covered by the bad-faith insurance laws. By abiding by the following rules and procedures, we are able to effectively defend our client and the insurance company throughout the duration of the litigation.
Thorough & Objective Investigation
This means that the insurance company takes immediate action on your behalf and conducts a comprehensive factual and legal inquiry into the incident with no unsupported assumptions or preformed conclusions to deny or underpay a claim.
Transparent Communication of Policy Limits & Settlement Demands
Keeping the insurance company and you, as the client informed about all settlement demands, no matter the amount, in a timely manner is imperative. It is our job to realistically advise about liability and damages based on what may happen during a jury trial.
Timely Payment of Undisputed Amounts
We recommend that insurance companies immediately pay any undisputed portions of a claim rather than withholding the entire amount over a partial dispute.
Proper Handling of Reservation of Rights (ROR)
As part of our duty to clear, timely, and open correspondence, we work with insurance companies to issue reservation-of-rights letters if coverage is uncertain and recognizing when there might be a conflict of interest between the insurer and the policyholder.
Fulfilling the Duty to Defend
As the defense counsel, it is naturally our Duty to Defend, but we also uphold and encourage this responsibility as part of our Insurance Defense. This protects the insured from potential or groundless claims, maintaining a constant line of defense in the lawsuit.
Meticulous File Documentation
Our firm keeps comprehensive and accurate claims and defense files that document the actual reasoning, legal basis, and timing behind every decision.