Use of insurance coverage to fund early settlement

By Jason Callen and Beau Creson (February 8, 2022, 3:06 PM EST) – Your company has been sued. When should you start thinking about a potential settlement and the role that company insurers play in such a settlement?

Healthcare customers — like most defendants in commercial litigation — often avoid discussing potential settlement in the early stages of a lawsuit. Defendants are understandably offended that they have been sued and are uncomfortable given the prospect of any payment to plaintiff, a disgruntled adversary.

Clients are also generally concerned that early engagement in settlement talks is seen as a sign of weakness. The same may be true for lawyers. Lawyers don’t want…

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