Click here to listen to the podcast: Duty to Settle and Tips for Avoiding Bad Faith Exposure in Third Party Insurance Disputes
ABOUT THIS PROGRAM:
Liability insurers often face situations in which the potential damages for a claim are far in excess of their policy limits. In these situations, if the insurer fails to adequately consider the insured’s interests in determining whether or when to settle the claim, the insurer risks a finding that it acted in bad faith, in which case it may have to pay an award far in excess of its policy limit, and may also face exposure for consequential damages and punitive damages. Also, plaintiffs’ attorneys are aware that their best chance to recover the full value of their case is to demonstrate that the insurer acted in bad faith, so they will try to set the insurer up for a bad faith finding by issuing time limited settlement demands. This program will explore the legal basis for the insurer’s duty to settle, and will offer tips on how to avoid a bad faith finding, without immediately offering policy limits to settle every serious case.