The Role of Insurance Companies
Behind nearly every civil case is an insurance company pulling the strings.
Insurance as the Hidden Party
In medical malpractice, hospitals’ and doctors’ liability insurers hire defense lawyers.
In auto accidents, the driver’s insurer controls settlement.
In bad faith cases, the insurer’s claim file reveals its strategy.
What Insurers Typically Control
Choice of defense counsel
Settlement decisions
Payment of verdicts (within policy limits)
Insurers’ Incentives
Insurers don’t see victims — they see claims. Their business model is simple: collect premiums, minimize payouts. That’s why they often deny valid claims, delay payment, or force plaintiffs to trial.
Why It Matters for Plaintiffs
Understanding the insurer’s role explains much of what happens in litigation. Defendants may appear to be fighting for themselves, but in reality, insurers call the shots.