What Happens If The Defendant’s Insurance Denies Coverage?

by Friedman & Ranzenhofer, PC on May 4, 2012

in NY Insurance Issues

Most Buffalo personal injury lawsuits involve defendants who have insurance coverage that will cover at least part of any judgment.  Under some circumstances, however, an insurer may attempt to deny coverage based on a violation of the insurance contract or other legal basis.

Generally, an injured party in New York State does not have any legal right to proceed directly against the insurance company of the person who caused the injury while the personal injury lawsuit is still pending.  It is largely up to the defendant to attempt to make the insurer provide a defense and coverage for any damages.  As it is obviously to the defendant’s benefit to keep the insurer involved, the defendant will usually make the effort to require the insurer to provide coverage.

Under certain conditions, the injured party may proceed directly against the insurer once a final judgment has been made against the defendant and the insurer continues to deny coverage.  It is necessary, however, to obtain the underlying judgment against the defendant first.

If you have suffered a personal injury and have any questions, please feel free to contact us at 716-542-5444.  We would be happy to help you.

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