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Liability cases are often complicated. Many business owners assume their insurance company will take care of their defense – that’s one of the reasons they dutifully pay their premiums every year.

In an ideal world the insurance company’s best interests would always align with the policyholder’s best interests. That’s not always how it works out. If the business owner is relying solely on the insurance company for their defense, they might find themselves in a situation where they have no control over their own representation. 

Who Gets to Choose Your Defense Counsel?

Most Comprehensive General Liability and Employment Practice Liability policies stipulate that it’s the insurance company who chooses the defense lawyer.

If you’re a business owner, you are likely familiar with the “panel of physicians” you need to maintain for workers’ comp compliance. These insurance companies have something similar – “panel counsel”. Panel counsel are in most cases local insurance defense attorneys who an insurer can use to defend their policyholders in liability claims.

The good news is these defense attorneys are generally well-vetted and relatively skilled at what they do. Afterall, the insurance company has a significant incentive to shield you from liability since it’s their money that’s on the line.

The potential bad news is that the attorney is working for the insurance company – not you. They may not care about your business, how you feel about the accusations being levied against you or the consequences of a perceived admission of culpability.

Allegations of any kind – especially serious accusations of negligence or wrongdoing – can negatively affect your business’s reputation. They may even jeopardize your company’s existence.

Having your own commercial litigation attorney who is focused on looking out for your business’s interests may be beneficial in those scenarios.

Dealing With Multiple Lawsuits or Jurisdictions

Another common complication in commercial liability claims is coordination and consistency of representation when multiple lawsuits or claims are being brought against your business. There are situations were a business that operates in many states may have different insurance providers in different regions.

A business could end up being represented by a complicated web of defense lawyers, none of whom are working closely with one another in a concerted defense of your company’s interests.

If your business finds itself in that situation it may be in your best interest to find your own defense attorney that understands your business, what’s at stake and how best to coordinate.

Choice of Counsel Endorsements

Business owners who are worried about their defense in a liability claim should ask their insurance company about Choice of Counsel Endorsements. You’ll likely need to wait until your policy renewal to have a Choice of Counsel Endorsement added to your policy.

If you do get sued, this endorsement would allow you to choose your own attorney instead of relying solely on the insurance company’s panel counsel.

Consult With Local Atlanta Insurance Defense Attorneys

If you’re a new business owner who wants to be prepared just in case someone does approach you with a liability claim or you’ve just received a demand letter and aren’t sure what to do – consult with some local commercial litigation lawyers.

When you’re speaking with prospective attorneys, try to gauge not only their litigation experience but also their perspective on defending businesses. Do you think they authentically care about the company you’ve built? Will they be willing to learn about your business and the liability risks unique to your industry?

One of the benefits of working with smaller boutique law firms are the life experiences of the attorneys. You’ll likely be speaking with fellow business owners who can appreciate what you’re going through.

Contact Edwards & Hawkins for a Free Consultation

Donald Edwards and Cameron Hawkins utilize more than five decades of combined experience to defend the interests of local Atlanta businesses and national companies in all types of commercial liability cases.

You’ve invested years, maybe decades, into building your business. We will fight hard to help you protect it.



Call (404) 526-8866 to schedule your consultation.