The hypothetical goes something like the following scenario. A customer or some third-party is severely injured as result of your alleged negligence. Maybe your employee causes a catastrophic car accident. Maybe a box falls on a customer’s head in your store. The victim has traumatic brain injury and goes through major medical treatment. The person will have trouble working for the rest of his or her life. He will need ongoing care or assistance. He has more than $100,000 in medical expenses and the prospect of more to come. Once the long-term prognosis is known, the person finds a lawyer, becomes a plaintiff and files the personal injury case. You get served with the lawsuit and turn it over to your insurance company. This article looks at some of the important questions that follow from this point forward in the litigation.
You made the first right step in turning the lawsuit over to your carrier. Most insurance policies require prompt notice of any claim, occurrence or lawsuit.