Effective Litigation Defense For Insurance Companies
As experienced insurance defense advocates in and out of the courtroom, our attorneys at Kramer Shull Reeths LLP provide assertive, strategic insurance defense representation to insurance companies and their insureds. They also assist both in-state and out-of-state attorneys seeking local counsel or co-counsel on insurance-related matters. From our office in Wausau, we provide representation to clients in central and northern Wisconsin and handle insurance defense cases statewide.
Handling A Range Of Insurance-Related Legal Issues
Our insurance defense trial lawyers have the skill, knowledge and insight that come from over 100 combined years of experience working almost exclusively with insurance companies. This background gives them a valuable perspective on every case, allowing them to develop comprehensive and cost-effective legal solutions.
Our team represents clients across Wisconsin in a wide range of insurance defense matters, including the following:
- Personal injury claims, including those pertaining to accidents involving cars, trucks, motorcycles, farm tractors, boats, personal watercraft, snowmobiles and ATV/UTVs
- Uninsured (UM) and underinsured (UIM) motorist claims
- Premises liability claims
- Other negligence claims, including third-party property damage, commercial general liability (CGL) claims, injuries caused by animals, and livestock escapes
- First-party property damage losses, including fire and water damage
- Claims against municipalities
- Administrative proceedings
- Examinations under oath
- Minor settlements
- Alternative dispute resolution, including mediation and arbitration
Our attorneys have the skill and knowledge to handle almost any insurance-related issue.
Prompt, Effective Dispute Resolution
Our lawyers understand what is at stake in the defense of lawsuits against insurance companies and their insureds. From start to finish, our team will aim to deliver a prompt and efficient resolution to your case.
Our attorneys’ guiding concern is always protecting the best interests of our clients and their insureds. They will work closely with you to allow you to make cost-effective, informed decisions and obtain the best results possible using the most cost-effective means for your situation.
Our team is conscious of the budgetary issues facing insurance companies, and it looks for ways to promptly resolve lawsuits through direct negotiation; alternative dispute resolution methods, such as mediation or arbitration; or dispositive motions. In some cases, the best resolution is in the courtroom, where our attorneys have the trial skills and experience to effectively present the case to a judge or jury.
We also provide prelitigation advising and consulting as well as the coordination of claim investigations. When you involve our lawyers early in the process, they can help avert costly and time-consuming litigation later. They often help clients take proactive steps to successfully resolve their claims before suits are filed.
FAQ Regarding Insurance Defense Litigation
Below are answers to questions that we most often hear from our clients:
What should I do if I’ve been served with a lawsuit that may or may not be covered by my insurance policy in Wisconsin?
If you are facing a lawsuit in Wisconsin and believe that your insurance policy covers it, consider taking the following steps:
- Review the lawsuit documents: Carefully read the summons and complaint. It’s essential to understand the claims being made against you and to know the deadline for responding to them.
- Check your insurance policy: Review your insurance policy to determine whether it covers the type of lawsuit you’re facing. Also, look for any sections related to liability coverage or defense obligations.
- Notify your insurance company: After you read the summons and review the policy, report the lawsuit as soon as possible. Give your insurance company copies of the legal documents and any other relevant information. Insurance policies often require timely notification of claims.
- Consult with an attorney: After contacting your insurance company, it’s often beneficial to seek additional help from a legal team that has extensive experience dealing with Wisconsin insurance law. It can help you understand the intricacies of what your policy does and does not cover and provide you with robust and tailored defense strategies.
- Follow instructions from your insurer: If your insurer determines that the claim is covered, it may appoint its own attorney to defend you. Cooperating with both the insurance company and your legal counsel can be helpful throughout the process.
- Keep records: Maintain a detailed record of all communications and documents with your insurer and your attorney.
- Respond to the lawsuit: Make sure that you respond to the lawsuit within the specified deadline. Failing to do so can lead to a default judgment. If your insurer is handling the defense, then it can manage this process.
Following these steps can help you protect your rights and manage the situation effectively.
What is an insurer’s duty to defend, and who selects the defense counsel?
In the context of insurance, the insurer actively fulfills its duty to defend, a significant aspect of liability coverage. Below is how the process generally works and how the company handles the selection of defense counsel.
Duty To Defend
The duty to defend is broader than the duty to indemnify. It means that insurers must provide legal defense to the insured when facing a lawsuit that potentially falls within the policy’s coverage.
An insurer has an obligation to defend as soon as there is an allegation that could lead to covered liability, even if the allegations are groundless, false or fraudulent.
Triggering The Duty
Allegations in a complaint against the insured can trigger the duty to defend. If the policy can cover any part of the claim, then, typically, insurers must defend the entire suit.
Selection Of Defense Counsel
Generally, insurers have the right to select defense counsel because they are paying for the legal defense.
However, conflicts of interest can arise, such as when an insurer reserves its right to deny coverage while defending the insured. If this happens, then the insured could choose to hire independent counsel and have the insurer pay for it.
Independent Counsel
When an insurer reserves rights or there is a significant conflict of interest, the insured might have the right to select independent counsel.
The insurer is typically responsible for covering the reasonable costs of independent counsel. However, the insured will likely want to coordinate with insurers regarding attorney selection and legal fees.
Cooperation With The Insurer
The insured generally must cooperate with the insurer and defense counsel throughout the legal process. This cooperation can include providing necessary information and participating in the defense strategy.
Resolution
The insurer’s duty to defend continues until the claim is resolved or until there is no possibility of getting coverage under the policy. Understanding the nuances of the duty to defend and the selection of defense counsel is crucial for an insurance company. It ensures that they can fulfill its contractual obligations while effectively managing costs and risks.
Make sure you consult with experienced and knowledgeable insurance defense counsel if you have concerns about potential conflicts of interest or issues in handling the defense.
What is the difference between defending under a reservation of rights and a complete defense?
When an insurer provides a defense to an insured, the nature of that defense can vary based on how the insurer perceives its obligations under the policy. Below are the differences between defending under a reservation of rights and providing a complete defense.
Full Defense
- Commitment: In a complete defense, insurers accept the claim as covered under the policy and assume the responsibility to defend the insured without any conditions or qualifications.
- Coverage assurance: The insurer fully commits to covering any potential settlement or judgment up to the policy limits. However, that is assuming the claim is within the scope of the policy.
- Control over defense: Insurers can typically control the defense, including the selection of defense counsel and strategic decisions in the case.
Defense Under A Reservation Of Rights
- Conditional defense: This is when the insurer agrees to defend the insured while reserving the right to later deny coverage based on specific policy exclusions or conditions.
- Notification: This is when an insurer notifies the insured through a reservation of rights letter, which outlines the specific reasons why they may deny coverage.
- Potential conflicts: A reservation of rights defense can create a potential conflict of interest. This is because the insurer is defending the insured but may later decide not to indemnify the insured if the insured’s claim is not covered under their policy.
- Independent counsel: Due to potential conflicts, the insured may be entitled to select their own attorney and have the insurer cover the reasonable costs, especially if the insurer’s interests might affect the defense strategy.
A complete defense can signify unconditional support from the insurer. In contrast, a defense under a reservation of rights can allow insurers to protect their interests by potentially denying coverage later. However, that can depend on how the claim develops. >
Schedule An Appointment
Talk with an experienced insurance defense attorney today. Contact us online today to learn more about our insurance defense services. You can also call us at 715-203-4534.