What is duty to defend?

| Dec 7, 2020 | Uncategorized |

All insurance companies in New York are responsible for paying benefits when their clients have been involved in accidents resulting in personal injuries where the client is apparently at fault to some degree. Sometimes, insured parties are totally at fault, partially at fault or can actually have no reasonable duty of care responsibility to the claimant. Cases where technicalities exist, or a claimant has a high percentage of personal fault for an accident, often require going to court for a fair settlement. The mere fact that someone is injured and filing does not mean the claim is valid. The law mandates that all insurance providers conduct a full investigation into all claims, and material details could become apparent when all the facts have been evaluated.

Responsibilities of insurance companies

Insurance companies have two obligations to their clients when processing claims. The primary responsibility is paying benefits when someone sustains injuries due to the fault of the insured client. The second obligation is defending the client in court when he or she has been sued unjustly, known in the legal industry as duty to defend. These cases can stem from auto accident or premises liability incidents, and the same standards apply concerning the percentage of fault.

Investigations must be conducted

Insurance providers must conduct a full investigation into all claims, and material details could become apparent when all the facts are discussed. These cases are typically settled in court or mediation between all parties. Insurance liability defense attorneys have a professional understanding of this process and are knowledgeable in pinpointing evidence that could indicate significant claimant fault, which could then reduce a claim value significantly.

Insurance defense attorneys also understand that the dynamic of premises liability and auto accident cases are different, but in essence, they are decided using the same formula. While all injured parties who submit claims want the maximum amount of financial damages, the truth is that this only happens when the case is obviously the fault of the respondent. These cases must be defended by the insurance provider, and it requires experienced insurance defense attorneys for the best outcome with respect to limiting financial damages.