When You’re Sued in Florida: Why Hiring Personal Counsel Is Crucial Even If Your Insurer Provides a Lawyer
If you’re facing a lawsuit in Florida and your insurance company has agreed to defend you, it’s easy to assume that you’re fully protected. However, relying solely on the attorney appointed by your insurer may not always be in your best interest. In many cases, hiring personal counsel—an attorney who represents you, not the insurance company—can be a critical step in protecting your financial future and legal rights.
Here’s why it matters.
1. Understanding the Insurance Company’s Duty to Defend
Under most liability insurance policies, your insurer has two major duties:
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The duty to defend you in a lawsuit that potentially falls within policy coverage.
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The duty to indemnify you for any covered damages up to your policy limits.
While the insurer must appoint legal counsel to defend you, that lawyer is ultimately paid by the insurance company. This creates a built-in potential for conflict—especially if there’s a reservation of rights letter, or if the damages in the lawsuit could exceed your policy limits.
2. Conflicts of Interest: Whose Side Is the Insurance Lawyer On?
The attorney provided by your insurer has ethical obligations to defend you, but they also often have an ongoing relationship with the insurance company. This dual allegiance can cause conflicts of interest in key situations:
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Reservation of Rights: If your insurer is defending under a reservation of rights, it means they may later deny coverage. In such cases, the insurer’s attorney could face a conflict between defending you and avoiding arguments that trigger coverage.
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Claims Exceeding Policy Limits: If the plaintiff’s claims exceed your liability limits, the insurer may have little incentive to protect your assets beyond those limits. Without personal counsel, you risk being exposed to a large judgment and personal liability.
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Coverage-Related Discovery: Insurer-appointed counsel may avoid asserting defenses or legal positions that would help your case but could trigger coverage disputes or make the insurer liable.
3. How Personal Counsel Protects Your Interests
Hiring personal counsel ensures you have an advocate focused solely on your legal rights, not the insurer’s bottom line. Your personal attorney can:
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Monitor the litigation for potential excess exposure.
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Push for appropriate settlement discussions to avoid personal liability.
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Help you understand your rights under your policy.
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Communicate with the insurer when bad faith conduct is suspected.
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Protect your interests if the insurer fails to settle a case within policy limits when it should.
This independent oversight becomes especially important if a bad faith insurance claim may be necessary down the line.
4. Personal Counsel in Excess Judgment and Bad Faith Scenarios
Florida law recognizes that an insurance company can be held liable for bad faith if it fails to settle a case within policy limits when it reasonably could have and should have done so. In such cases, personal counsel is essential in:
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Documenting the insurer’s conduct during settlement negotiations.
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Preserving your rights to pursue a bad faith claim after an excess verdict.
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Advising whether to assign your rights to the plaintiff as part of a Coblentz agreement or other settlement strategy.
Without personal counsel, policyholders may inadvertently waive rights or fail to pursue valid legal remedies.
5. Personal Counsel Is Especially Important in High-Stakes Litigation
Consider hiring personal counsel in Florida lawsuits involving:
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Wrongful death or serious bodily injury claims
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Large commercial disputes or professional liability
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Multiple defendants or complex litigation
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Claims with disputed coverage issues
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Any case where damages may exceed your policy limits
In these situations, an insurer’s lawyer may not be equipped—or willing—to fully protect your personal financial exposure.
Final Thoughts: Don’t Wait Until It’s Too Late
Florida policyholders often underestimate the importance of hiring personal counsel when being sued. But when your assets, credit, or professional reputation are on the line, having an attorney whose sole loyalty is to you—not the insurance company—can make all the difference. If you’ve received notice of a lawsuit and your insurance company has agreed to defend you, now is the time to consult with an experienced Florida personal counsel attorney.
Need Guidance?
If you’ve been sued and your insurer is defending you, but you have concerns about exposure, coverage, or settlement strategy, consult with a Florida attorney who focuses on representing policyholders. Your future may depend on it.
Have you or someone you know been sued? Contact Florida Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at [email protected] or by text at (305) 929-8935.
