Q: Does an insurance company have to tell you when you are being sued, can they settle without your consent?

A: 1. A party suing you, including your own insurance company, is required to serve you with process notifying you of a lawsuit.

2. If a claim is covered by your insurance policy and you tender it to your insurance company for a defense, in many instances, the policy expressly provides that the insurance company can settle the claim within the policy limits without your consent. Professional liability policies (insuring occupations like attorneys, engineers, architects, etc.) often have express language which requires the policyholder to consent to any settlement.

3. Many claims are asserted against policyholders which are not true. Liability insurance companies almost always are required to defend claims even when they are not true. With the cost of defending a lawsuit likely to be tens of thousands of dollars, a liability insurance company has an incentive to settle for less than the cost of defense even when it thinks that a claim is not true.

A: It could depend on the wording of the policy. But in general, carriers usually have the right to make judgment calls on settling or defending at trial. Good luck

A: Addendum - in terms of telling you, that could also be in the policy. But in terms of general insurance practices, virtually any carrier will place you on notice of a claim. They could require your attendance at deposition or other forms of cooperation, so they will most likely tell you promptly. Good luck