Insurance defense litigation is a legal field where lawyers represent insurance companies and their policyholders when claims lead to lawsuits, aiming to manage liability and costs, covering diverse cases like auto accidents, slip-and-falls, malpractice, and product issues, balancing insurer’s financial goals with policyholder’s coverage. It’s a core part of tort law, involving complex disputes, discovery battles, and negotiation, often focusing on reducing payouts or defending against claims of bad faith.
What it involves:
Representation: Lawyers defend policyholders (e.g., drivers, homeowners, professionals) against lawsuits.
Types of Cases: Motor vehicle accidents, premises liability (slip & fall), professional malpractice, construction defects, product liability, and wrongful death.
Key Goal: For the insurer, it’s to minimize financial loss by reducing liability or settlement amounts, often involving tactics like discovery delays or motions.
Dual Role: Attorneys represent both the insurer and the insured, though conflicts can arise, particularly when policy limits are exceeded.
Common scenarios:
Policyholder Sued: A driver with GEICO causes an accident and is sued; the defense lawyer represents the driver for GEICO.
Claim Denial: A homeowner sues their insurer for denying a fire claim, requiring defense for the insurer.
Multi-Party Lawsuits: Multiple parties (and insurers) are involved, leading to complex claims of shared fault and indemnity.
Key aspects for lawyers:
Learning Ground: A good place for new lawyers to learn litigation fundamentals within an established system.
Focus: Can involve managing complex discovery, dealing with indemnity issues (co-defendants suing each other), and handling various legal strategies.
Specialization: Can involve specific areas like bad faith claims, excess lines, or reinsurance.
