It seems like I get this question once every couple of months.
Hey Bill, my company just got sued. After paying premiums for years, I finally had to make a claim. My insurance company wrote me a “reservation of rights” letter. They offered to have one of their “panel counsel” defend my company, but then they listed 15 reasons why they don’t need to cover the lawsuit, including that there is no “covered claim,” the event was not an “occurrence” or accident but resulted from “intentional” conduct, and the damages may not have “occurred during a policy period.”
Needless to say, I’m worried that the insurance company’s “panel counsel” may be beholden to the insurance company and consciously or unconsciously hinder my coverage. I am concerned that the insurance company’s attorney may be more interested in protecting his future stream of new cases from the insurance company than me as our paths may never cross again.
Under what circumstances can I choose my own defense attorney? I want to raise the issue now so I don’t have to clean up a mess after the fact. Help!
- What state law governs the conflict of interest issue? The answer usually begins with an unsatisfying “it depends,” because conflict of interest laws vary by state. What might be a conflict of interest giving the policyholder the right to select counsel in one state may not be sufficient in another state.
- A “conflict of interest” doesn’t mean that the conflicted party is engaged in conduct harmful to the other party. It means their interests are divergent, which creates a potential for such harm. “When a potential...
