Factors Considered During Insurance Defense

Insurance policies demand attention and investment in our daily lives as we spend thousands of dollars on reliable coverage. Faced with a personal injury case, we likely hold an insurance policy intended to protect us, whether that policy concerns automobile accidents, property damage, medical malpractice, among other areas. Most likely, the policy should provide defense against claims in a personal injury lawsuit. Often, policyholders feel poorly compensated by insurance companies after a loss and request further review. Therefore, prudent and adequate defense assists and protects insurance companies and their policy stipulations during contentious lawsuits. The following factors deserve consideration during proper insurance defense.

Negotiations

Insurers and policyholders often negotiate outside of court to discuss proper compensation. Unfortunately, not all negotiations end amicably and require further review by proper legal counsel to ensure the fairness of compensation under the written policy, which insurance companies and the insured commonly dispute.

Stipulated Coverage and Payout

Policyholders often seek maximization of gains while securing a certain degree of coverage. They pay less for an insurance plan that provides coverage commensurate with lower costs. Attorneys must establish the exact nature of an insurance plan, which claims receive coverage, and that the policyholder knowingly paid for such coverage outlined in a written contract.

Intense Emotions 

Understandably, injuries inflict physical, financial, and psychological pain. Facing a loss and anticipating compensation, policyholders sometimes find themselves in an unstable emotional state. They delay contacting an insurance company out of fatigue or a desire to forgo a time-consuming process, but some individuals reach out to insurers months after an incident, placing their claims’ legitimacy in question. Some individuals fabricate details of their claims, placing insurers at risk for unjustified losses.

Defense of an insurance policy saves further time, costs, and possible damages to the insurer. For competent, proactive insurance defense, contact Arata, Swingle & Van Egmond today.