I’m being sued by another party, but my insurer says it doesn’t have to defend me under my policy coverage. What can I do?
You can go to court and seek a declaratory judgment that says you have the right to be defended by the carrier. Often times, you only have to prove that a potential for coverage exists in order to win a declaratory judgment. Note that the insurance company may choose to defend you under a reservation of rights, which means that if you lose in court, they may refuse to pay the judgment, and you will still have to fully litigate the issue of whether they are required to pay.
What if the insurance company is not acting in bad faith, but they are still wrong?
Uncovering bad faith is not always easy; it requires looking at all the circumstances surrounding the insurance company’s decision. It is possible that the insurer is acting in good faith, but simply making the wrong decision as to whether a claim is covered under the policy. If the carrier is not complying with the terms of the policy, it may be liable for a breach of contract, even though it may not be bad faith. In a breach of contract action, you can force the insurance company to hold up its end of the bargain and pay benefits in accordance with the terms of the policy.
What do I do with all these bills while I am waiting to resolve the insurance dispute?
If you have health insurance, all of your medical expenses will be processed through that system, and you may only be responsible for any deductibles or co-pays while your claims are being processed. Check your other policies to see how much Medical Payments coverage (med pay) you have; med pay can significantly reduce your out-of-pocket expenses. Also, depending upon the nature of the accident or the extent of your disability, you may be entitled to Workers’ Compensation, Social Security Disability, or other benefits. We can help you in these areas while working to resolve your insurance matter. We can also help you provide your doctor with a letter of protection letting him or her know that your medical bills can be paid out of any settlement or judgment you receive.
