Insurance Law Lesson 42: Life, the Universe, and Everything

One of my mentors is fond of saying that “insurance makes the world go ‘round.” It’s true.

Consider: Fatal car accident. Clear liability. Top tier plaintiff firm. Settles for $20,000. Why? Bc that was the ins limit.

There are lawsuits that are to make a point, to punish, or to harass (wholly improper). But, most of the time, a case needs three things to get filed: liability, damages, and expectation of collectability. The third often comes down to ins.

If there is unlikely to be a collectible judgment at the end of the case, an attorney won’t take the case on contingency. So, the plaintiff would have to put up the money to fund litigation, knowing that he is unlikely to get any money back. Most people cannot afford that.

Similarly, from the defense side, the difference between insurance hiring a lawyer and paying out of pocket is monumental.

There is liability, risk, and loss in everything. It’s everywhere.

People (health, disability, life, etc), Property (cars, personal, business, premises, etc), Leisure (camps, travel, entertainment), Business (professional, employment, worker’s comp, CGL, etc), everywhere.

Risk is everywhere. Insurance is everywhere. Whether there is coverage, and how much, can the difference between lights out and a new dawn.

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