There are potentially valid insurance claims and there are frivolous lawsuits. Prime Insurance Company is your ideal insurance partner, fighting for your clients in all cases. With talented and skilled in-house teams including risk management and legal professionals, we deliver excellent results. Insurance producers who want a good insurance partner need to look no further than Prime.
Frivolous Lawsuits and ‘Nuclear Verdicts’
There is a natural human response to fear and threats, which many plaintiff attorneys use to win over juries in insurance claims that go to trial. The result – verdicts and awards that are climbing ever higher. Once they hit the $10 million threshold, these are known as nuclear verdicts, leaving a mess of destruction in their path.
It is not hard to find examples of these massive, verdicts. As the law.com article notes, many of these nuclear verdicts are not paid in full, with post-trial settlements, appeals, appellate reviews, and other scenarios. Still, these very high verdicts can ultimately inflate even a post-trial settlement once the bar has been set.
These supersized verdicts are problematic for both insurance companies and insurance producers. Massive payouts impact how carriers can do business, which in turn makes it difficult for producers to meet their clients’ needs. Clients operating in riskier spheres may find it challenging to secure insurance in the first place as companies shy away from the nuclear potential.
One of the key issues with nuclear verdicts is that they often do not reflect true economic damages. That goes back to the emotional human response. When attorneys trigger jurors into feeling deep emotion about a case, verdicts can inflate in response, disproportionate to the facts.
When attorneys make jurors feel like their very community is at risk due to alleged dangers, they are primed to hit back by awarding damages. They will paint a picture of greedy defendants trying to avoid paying out while introducing unreasonable award numbers onto which jurors fixate.
Fighting Insurance Claims In and Out of Court
Heading off a nuclear verdict in court is something our team at Prime Insurance Company does to fight for your clients.
Of course, one of the best ways to avoid these frivolous lawsuits and nuclear verdicts is to keep insurance claims out of court in the first place. Our claims direct access function ensures that we can determine the factual and legal issues of a claim as soon as possible. We are not passive about managing claims. We take an aggressive, investigative approach for a timely and fair resolution. Nobody wants to incur needless expenses, which is part of why our in-house claims team is one of our highest priorities.
Our goal is always to handle claims in-house early and proactively. We do this with support from our extensive network of professionals, including examiners and risk managers. Of course, if the situation calls for attorney counsel, we bring our legal team on board too.
As we manage these insurance claims and avoid frivolous lawsuits, you can expect meaningful status updates for yourself and your client. We are at mediations and legal conferences and remain ready to respond to bad-faith allegations.
The CDA system, with our management and in-house legal team, has resolved over 60,000 claims since its inception. The CDA litigation history includes many notable cases in which we aggressively and fairly defended policyholders.
Even without the risk of these nuclear verdicts, it is absolutely crucial for your clients to have the coverage they need. This is all the more true when it comes to specialty risks, which are often underinsured through primary insurance. We specialize in excess and surplus lines coverage, ensuring that your clients are protected above and beyond the basics.
We work hard to offer risk management advice and protocols that drop the potential for a lawsuit in the first place. And, we are committed to helping your clients through any kind of claim that may ultimately arise. That is why we are an excellent partner for insurance producers.
Partner with us using our online application today. For more details, you can also call Prime Insurance Company at 800-257-5590 or email at info@primeis.com. Find us on social media, through Facebook, Twitter, YouTube, LinkedIn, and Instagram. As always, read our blog for more insight.
___________________________________________________________________________________________
Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.
