How a defended case is run
In insurance defense litigation, the assigned firm usually works under the carrier's billing and reporting guidelines, sending periodic evaluations and budgets as the case develops. Those reports typically address liability, likely damages, and settlement value, and they influence how the carrier sets its reserves and authority. You are entitled to be kept informed about significant developments, and you can ask defense counsel for copies of pleadings and reports concerning your case. If guidelines from the carrier ever seem to limit work that the defense needs, raise it with defense counsel directly, because the duty of loyalty runs to you. Keep your own copies of the policy and all coverage correspondence in one place.
Your role in discovery
The defense depends on information that only you or your business may have. Expect requests for documents, emails, incident reports, and personnel or maintenance files, and route them through defense counsel rather than sending them to the plaintiff or the carrier on your own. Employees who witnessed events may be deposed, and they should be prepared by the defense lawyer. Preserve relevant records as soon as the claim arrives, including electronic data that routine systems might delete. Policies generally require cooperation, and failing to provide information or attend depositions can create coverage problems on top of the lawsuit.
Settlement consent and uninsured exposure
Many liability policies give the carrier the right to settle within limits without your approval, while some professional liability policies require the insured's consent, sometimes with conditions if you refuse a recommended settlement. When a claim could exceed the limits, or includes items the policy does not cover, such as punitive damages in New York, your own assets may be at stake. Personal counsel, separate from the assigned firm, can monitor the case, urge the carrier to consider settlement opportunities, and protect your interests on uncovered claims. Depending on the situation, we may serve as defense counsel or as personal counsel working alongside the firm the carrier appointed. Reviewing the complaint, the policy, and the coverage letters together shows where your interests and the carrier's may diverge.
