Types of Lawyers Involved with Insurance Cases
Many people assume that after a lawsuit has been filed, one attorney or law firm is involved with one side to the case and another lawyer or law firm represents the other side. However, if the claim at issue in litigation is covered by insurance, several different types of attorneys may be involved with the matter. Although a number of different kinds of lawyers may be involved with insurance matters, there are several important and different types of lawyers involved with insurance cases.
Liability Counsel
One of the types of lawyers involved with insurance cases is liability counsel. This is the law firm that is assigned by an insurance company to represent an insured in a lawsuit. Depending on the insurance policy, the insured may have the ability to select the lawyer who will represent them in the case. In some instances, the insured and the insurance company may agree to split the fee of the lawyer so that the insured has the option of choosing an attorney with which they are most comfortable.
The liability counsel will answer the complaint in the underlying lawsuit, handle discovery, file motions, and attend the trial in a case if one is scheduled. Throughout the process, liability counsel will also keep the insurance company apprised of their efforts. This is so the insurance company understands that their interests in the lawsuit are protected, and so that liability counsel can be paid by the insurance company. However, liability counsel is ultimately responsible to the insured, since they are the client for whom the liability counsel makes an appearance in a lawsuit.
Coverage Counsel
Depending on the insurance policy, there are a variety of ways that parties can lose insurance coverage during litigation. Another one of the types of lawyers involved with insurance cases is coverage counsel, which reviews a file and determines if an insurance company owes coverage to a party in a given matter. Oftentimes, coverage counsel makes a determination about coverage before an insurance company decides to extend coverage in a given case. However, sometimes there is not enough time to make a coverage determination before an insurance company needs to assign liability counsel to protect an insured in a lawsuit.
Coverage counsel works exclusively for an insurance company, and their responsibilities are to an insurance company. If coverage counsel thinks that an insurance company does not owe coverage in a situation, they will recommend that an insurance company not extend coverage in a given matter. Furthermore, in close calls, they may suggest that a lawsuit be filed so that a judge can determine whether the insurance company needs to protect an insured. This is because an insurance company can get into trouble if they fail to protect an insured when it is a close call whether a defense is owed. However, once a judge has ruled on a coverage issue, insurance companies can be more assured that they will not get into trouble by denying coverage. In any case, although coverage counsel does not represent an insured in an underlying lawsuit, they have a substantial impact on the direction of litigation involving insurance.
Monitoring Counsel
Another one of the types of lawyers involved with insurance cases is monitoring counsel. Monitoring counsel is a lawyer hired by an insured to help them deal with a legal issue. Oftentimes, insureds are not allowed to decide which lawyer will represent them in a given lawsuit, since insurance policies usually leave this decision to the discretion of the insurance company. Usually, insurance companies have lists of law firms that will agree to take cases from the insurance company in volume in exchange for lower fees. As a result, it pays for insurance companies to use their own selected counsel to save money.
However, insureds often wish to hire their own counsel who is not being paid by an insurance company, and this is monitoring counsel. Monitoring counsel will review the files of liability counsel and make sure that liability counsel is doing everything they can to protect the rights of a party. Furthermore, the presence of monitoring counsel will usually make liability counsel try harder on a party’s case, since monitoring counsel will put pressure on liability counsel to take every legal strategy that can benefit a party.
Monitoring counsel is also usually the lawyer that will defend an insured in a declaratory judgment action. As previously mentioned, insureds may have to defends themselves in a dispute with an insurance company over whether the insurance companies owes a duty to defend an insured in a given case. Since monitoring counsel already knows the facts of a case from reviewing the case files, they are also typically tasked with litigating disputes with an insurance company. In addition, monitoring counsel may also represent a party if they wish to assert a bad faith claim or other cause of action against the insurance company. Monitoring counsel is usually the only attorney that has no connection with an insurance company and can given unfettered representation to a party about their situation.
The Rothman Law Firm is experienced with all types of insurance law issues. We have substantial experience serving as liability counsel, coverage counsel, and monitoring counsel on behalf of insurance companies and insureds. If you are seeking an experienced New York and New Jersey insurance law and litigation attorney, please feel free to contact The Rothman Law Firm to request a free consultation.