Who Gets to Pick the Lawyer

Discussion in 'E&O - Errors and Omissions for Insurance Agents' started by SamIam, May 7, 2014.

  1. SamIam
    Offline

    SamIam Well-Known Member

    Posts:
    1,025
    Likes Received:
    0
    State:
     
    I just renewed my policy but I've always been curious who gets to pick an attorney for a claim. Does the E&O company appoint one or do you get to hire your own. How does that work.
     
  2. FEX Quotes
    Offline

    FEX Quotes Well-Known Member

    Posts:
    1,101
    Likes Received:
    1
    State:
    New Jersey
    E&O works just like any other casualty product in this regard. The E&O carrier will have an attorney or firm assigned to handle the claim who will work closely with the company's claim rep.
     
  3. raphoenix
    Offline

    raphoenix Member

    Posts:
    20
    Likes Received:
    0
    The provider ALWAYS picks the lawyer. They are looking at hiring the least expensive lawyer who will bill the least number of hours at a low rate.
    It is insurance after all.

    Believe me, I had one assigned to me once, and they were always concerned with filing reports with the carrier about how soon they expected to finish.
     
  4. Milkman1265
    Offline

    Milkman1265 Well-Known Member

    Posts:
    736
    Likes Received:
    0
    State:
     
    i would think they would hire the BEST lawyer they can for the budget?

    IMO, it would make sense to help you win so they dont pay out as money and get a hit on their bottom line?
     
  5. raphoenix
    Offline

    raphoenix Member

    Posts:
    20
    Likes Received:
    0
    The lawyer I received was good, but the carrier did not pick up the bill for me.

    That's what I thought would happened at first, then they informed me of the policy terms that stated that they did not cover ______________ damages or settlements, but only the cost of the lawyer to defend the claim.

    In other words, I would have had to let the case go to trial and pray for a complete dismissal (to avoid any additional costs), or run the risk of losing at trial (and then having to pay the WHOLE claim amount).
     
  6. Milkman1265
    Offline

    Milkman1265 Well-Known Member

    Posts:
    736
    Likes Received:
    0
    State:
     
    E&O did not cover your lawyer fees? Shouldn't it all be included, the only distinction i've seen is, whether the fees are inclusive in the 1MM aggregate or a separate limit.
     
  7. raphoenix
    Offline

    raphoenix Member

    Posts:
    20
    Likes Received:
    0
    No, no...first, I don't want to confuse you, but this was a malpractice action.

    The insurer DID COVER the attorney fees. That was all that they covered though.
    The thing that really cost me (that I thought would be covered) was the settlement payment itself (that the carrier said they did not cover).

    In other words, the carrier paid for a lawyer to defend me, but if they were unsuccessful, I was liable for the damages.
     
  8. moonlightandmargaritas
    Offline

    moonlightandmargaritas Well-Known Member

    Posts:
    9,751
    Likes Received:
    19
    State:
    Florida
    Like most casualty coverages, you're covered for your policy aggregate, plus any fees to defend you.
     
  9. Milkman1265
    Offline

    Milkman1265 Well-Known Member

    Posts:
    736
    Likes Received:
    0
    State:
     
    not the policies i see! all the e&o policies in NY i've seen are included in the aggregate, unless you specifically endorse/pay for outside of aggregate.

    but is what i learned from class and regular GL claims etc... but even my own E&O states that attorney fees are included in max aggregate coverage.


    to OP, so they denied claim based on the action you did was not a covered event? (i'm guessing they called it an intentional act of neglect or something like that?)
     
  10. raphoenix
    Offline

    raphoenix Member

    Posts:
    20
    Likes Received:
    0
    Just re-read the policy itself, said there was an EXCLUSION for any act alleging dishonest conduct....

    but then again, couldn't the carrier always argue that the insured was 'dishonest' (for example: Did not honestly quote a sufficient amount of coverage just to make the sale...)???

    ----------

    No, they denied based on the 'dishonest' claim and that I was only covered under one of my corporations, not the others cited in the suit...
     

Share This Page