On Your Side

Why Insurance Is Very Important If You Are Sued

Texas Insurance Coverage Lawyer

Anyone can become a party to a lawsuit. You can be involved in a car accident, a dispute over property, or any other type of legal claim for damages. People who face these circumstances typically believe they have insurance to protect them when they are sued. One of the most valuable benefits to a liability policy is the insurance company’s obligation to defend you in a lawsuit – hiring and paying a lawyer who is competent and will provide an aggressive defense. But all too frequently, policyholders are shocked to learn their insurance company will not defend them in a lawsuit, leaving them to fend for themselves in a legal world they know little about.

If an insurer refuses to defend you, it is critical to consult a knowledgeable insurance coverage lawyer as soon as possible. Insurance companies often declare that there is no obligation to defend you or instead offer a conditional defense that could be taken away at the insurer’s whim. If the insurer acts wrongfully, it may be guilty of not only breaching the insurance policy but insurance bad faith. It is important for you to know your options and your rights, including filing an answer to the lawsuit to prevent a default judgment from being rendered against you.

Read Your Insurance Policy and Notify Your Insurer

If you are sued, read your insurance policy to attempt to determine whether you might have coverage. But regardless of your own opinion on coverage, notify all of your insurers that you have been sued, provide a copy of the lawsuit to each insurer, demand all insurers defend you, and do all of this in writing. Do not try to decide which policy(s) might provide coverage – again notify all insurers. Keep a written record of your communications with every insurer.

You should also promptly contact a lawyer experienced in insurance matters to protect your interests, provide advice to determine if there is insurance coverage, and make demands on the insurance company to defend you. An insurance coverage lawyer can effectively pursue your rights to have your insurance company defend you in a lawsuit at the insurer’s expense.

Protecting Your Financial Future

An undefended lawsuit could result in financial calamity. It is important to have legal counsel that ensures your insurance company(s) fulfills its obligation to defend you. In addition to demanding a defense, your lawyer can insist your insurance company settle the lawsuit or satisfy any judgment against you as part of the insurance company’s legal obligations. Our law firm can help in all of these instances.

Contact our Dallas law firm to discuss your case free of charge. We handle matters related to insurance companies who refuse to defend policyholders throughout the State of Texas.