Posted on Insurance Law Blog / BlogWhy Won’t My Insurance Company Pay After Defending My Case And Losing? [Cumis Counsel]

Page Updated 12/09/2021

Why Won’t My Insurance Company Pay After Defending My Case And Losing? [Cumis Counsel]


If you’re in a situation where a person sues you for an accident, your insurance company has the obligation to defend the claim against you or pay compensation to the suffering party.

In many cases, an insurance company will take its obligation to defend more seriously than compensating against a claim leading to disputes.

This can create legal problems for you if the other party reaches out to an experienced personal injury lawyer for help. In the meantime, let’s see what an expert, Los Angeles insurance law rights attorney has to say about Cumis counsel and conflicts.

Insurance Company Won’t Pay? Contact Ehline Law to Fight for You

  • When You’re Sued and the Insurance Company Denies Claims
  • When Insurance Companies Refuse to Pay
  • File a Lawsuit to Get the Ball Rolling
  • Contact a California Insurance Attorney Today!

The same situation can apply to you when an insurance company refuses to pay a claim even after losing. What do you do then? Whichever side of the situation you end up in and you’re not sure what to do, contact a personal injury attorney for legal advice.

When You’re Sued and the Insurance Company Denies Claims

An insurance company will always give preference to the duty to defend the insured against third-party claims from a car accident or any other type of accident over their duty to indemnify. In doing so, the third party may want to pursue legal action against the insurer which can affect the insured and their reputation.

Duty to Defend Vs Duty to Indemnify

Century Insurance Company v. Superior Court is the perfect example where the insured had gotten into a car accident due to their own negligence leaving the other driver dead. The claimant went on to make a claim well within the policy limits in the insurance contract. However, the insurance company went on to defend their policyholder and refuse the claims against the insured and his or her insurance company. In doing so, this led to the claimant to exercise judgment against the insured, however, the insured gave all their rights against the insurance company allowing the claimant to not execute judgment against the insured.

This type of action where the insured assigns their rights to the claimants is common when an insurance company defends and loses the third party claim against the insured. Assigning rights can help the insured step aside from all legal actions that a claimant might take. In doing so, the claimant can then pursue a legal fight against the insurance company while the insured gets protection from any judgment against them.

Insurance companies can take decisions that might put the insured at further risk. For example, insurance companies can defend claims against the insured but if the claim is within the policy limits then it can actually pose a serious threat to the insured.

This is because if the insurance company loses to pay out injury claims even if there is liability coverage for it, the responsibility will fall on the insured. The insured can not settle the case as well unless they pay money to the other party, which they may not have.

In such situations, it is best to approach your insurance company and remind them of their duty to indemnify insurance claims. Even an incorrect assessment of the insurance coverage by your insurance company can put you in a vulnerable position.

Now let’s look at the situation if you were the other driver dealing with an insurance provider refusing to pay.

When Insurance Companies Refuse to Pay

An insurance company will send an insurance adjuster to start assessing the damage and in many cases, the insurance adjusters will tell you that the insurance company is denying your injury claims unless you give in evidence.

Usually, an insurance adjuster will ask to record statements but never make the mistake of giving one. These are tactics that the company uses to delay your injury claim. Don’t wait and get an attorney who will protect your rights and fight for you.

Buying time in the claims process is something these companies have gotten good at. They will send you to get documents and medical records to make a financial recovery, however, when you give them one document, they will send you to get another. It is best to let an attorney deal with the insurance carrier and get you the compensation you deserve.

Raising Questions over Medical Bills

Insurance companies have understood that getting private attorneys and investigators costs them a lot of money in attorney’s fees, instead, they hire legal professionals and set their own law firm to defend the insurers against claims.

Just like this, an insurer will also have an “expert” medical team to review and assess your medical records and then devalue claims. The medical team often has unqualified medical professionals who will use the insurance policy against you and defend the at-fault party.

Not just that, insurance firms hire engineers and will argue that a car accident can not lead to such injuries unless there is a lot more property damage to the car. These are just a few things these companies do to “determine fault” and refuse to pay claims.

File a Lawsuit to Get the Ball Rolling

The recommended course of action when an insurance company starts to delay the claims process for injured victims, file a lawsuit.

Insurance Companies like to Avoid Law Firms

You must have come across many paid attorney advertising or lawyer referral services, but you must do your own research on which attorney to go with. Having the right lawyer working on your case can definitely send shivers across the company.

A simple written notice can work wonders. Insurance firms understand that lawsuits are bad publicity and they will try to do whatever they can to help resolve the matter. A strong law firm can even force the insurance firm to pay more and in certain situations, they will.

Not only will a lawyer ask for medical treatment bills compensation but also lost wages if applicable, punitive damages, and more to help you recover from your loss. In many situations, the insurance firm has a lot of control because they already have your money. However, having an expert legal team can take the case to a jury trial if need be.

Contact a California Insurance Attorney Today!

Insurance companies can be a handful and you should leave the negotiations to an expert attorney. Ehline Law strives to deliver a professional and understanding attorney-client relationship while delivering positive results. We will help you get the settlement offer you deserve.

Contact us at (213) 596-9642 and get a free consultation with our attorneys today! Feel free to use our convenient online website contact form today.

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Los Angeles, CA 90071
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633 West 5th Street #2890
Los Angeles, CA 90071
(213) 596-9642
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