Confessions of a Personal Injury Lawyer: Insurance

As a practical matter, insurance coverage is essential to being able to obtain a recovery in a personal injury case. Without it, there is usually little to no ability to pay. Having to get a verdict and then chasing personal assets to get paid is almost always a losing proposition.

Insurance is the business of agreeing to cover the cost of a possible loss in exchange for payment. Insurance companies are paid routinely to cover losses including death, fire, auto, disability, commercial loss, flood, illness, homeowner and business negligence, professional negligence. Insurance companies usually do pretty well at it. At the same time, insurance enables the customer to have the protection of a corporation with enormous resources in the event that a risk comes to pass. Insurance also creates the capacity for compensating wrongfully injured people.

Car insurance exists because of the risk of being responsible for injury to another from careless driving. If that risk didn’t exist, we wouldn’t pay an insurance company to cover it. Ironically, while insurance companies work to avoid being responsible for such compensation, that risk drives their revenues and that is what they are paid to do.

By:  Peter G. Webb

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