Receiving a letter from solicitors informing that someone is making an injury claim against you can certainly have a negative impact on your day.
Depending on the circumstances of the accident, you may be confronted with a Letter of Claim or a Claim Notification Form which set out full details of the alleged incident and injuries. But no matter what correspondence you receive there will be strict response timeframes set that you will be told you need to abide by.
Often the first reaction to this letter is one of worry, as you may not know how you are going to respond to the claimant solicitors, defend the claim or even pay the compensation.
However, the good news is that the vast majority of claims are usually covered by some kind of insurance policy and we're going to explain the scenarios where insurance may cover the claim well as your options when no insurance is available.
Defending Road Traffic Accidents.
As it's a legal requirement that you must have at least third-party motor insurance to drive on UK roads, the claim is likely to be fully covered by your vehicle insurance. While it is likely your insurer has already been notified of the accident and subsequent claim, your first action should be to advise them of the solicitor documentation you have received.
One important item to remember is that not having the optional 'Legal Expenses Cover' on your policy will not stop your insurance company acting to defend a claim made against you. Comprehensive, fire and theft and third party insurance should all provide sufficient cover to defend the claim against you.
When you report the claim, you will almost certainly be asked about the accident circumstances, vehicle damage and any evidence you have. This will be used to establish liability (fault) for the accident which will determine how your insurance company handles the claim.
Your insurer should then deal with the matter from this point forward including complying with the various deadlines and disclosure requirements. If the case gets to the stage of court proceedings, then your insurer will also appoint a solicitor to defend the case who may also want to discuss the incident with you.
There can be instances where your insurance company refuses to cover you or when you don't have suitable insurance in place for a road collision (i.e. a cyclist injures a pedestrian). In these cases, the claim may be dealt with by the Motor Insurance Bureau who handles uninsured driver claims or you may need to seek your own representation.
Injury Claim by an Employee.
If a member of staff is making a claim for injury, usually your Employers' Liability Insurance will cover your business' legal costs to defend the claim, as well the payment of any compensation that is ultimately awarded.
Often the Claim Notification Form from the claimant will specifically request your insurer's details and instruct you to pass the documents on to them. Once this is done, your business insurer will begin investigating the incident and appoint one of their panel solicitors should it become necessary.
For most businesses that have employees, this type of insurance is compulsory under the appropriately named Employers' Liability (Compulsory Insurance) Act. However, there are some exceptions where employee insurance isn't mandatory such as:
If an injury claim is made by an employee and no appropriate business insurance covers the claim, then you will need to seek legal advice as soon as possible. There are various 'pre-action' steps and deadlines that need to be met and failing to comply with them can have a significant impact on the cost of the claim.
Injury Claim by a Customer or Member of the Public.
Unlike other types of insurance, taking out Public Liability Insurance is optional for a business. If in place, it will cover your business premises when customers visit you as well as if a member of the public is injured during the course of your work.
While Public Liability Insurance covers you for day-to-day business activities, it often doesn't cover you for injuries caused by a product you have manufactured or supplied. For this Product Liability Insurance is often required.
So you will need to consider which of your insurance policies applies to the circumstances that allegedly caused the claimants injury.
If your business has a suitable Public or Product Liability Insurance policy the claim documentation can be passed on to them. As with Employers' Liability Insurance the policy should cover legal fees to defend the case along with the payment of any compensation that is awarded by the court or agreed in settlement by your insurer.
However, as Product/Public Liability Insurance isn't mandatory and there can be various exclusions depending on the policy purchased, it is the area where we see the most claims that need to be dealt with on a private basis.
Injury Claim Against a Homeowner.
If someone has been injured whilst lawfully on your property or in your home, then your Home Insurance may cover the cost of the claim depending on the accident circumstances. The 'personal liability' or 'liability to the public' section of a Home Insurance Policy often covers the owners and occupiers if they are held responsible for an accident that occurs in or around the property.
Some Home Insurance products even provide cover for policyholders away from the property, so it is a policy always worth checking.
There can however be many exclusions to Home Insurance liability cover, so you will need to consult your policy and speak to your insurer about whether a claim is covered. Common exclusions may be:
I've a personal injury claim against me with no insurance....
After you've exhausted the potential insurance policies that may indemnify you, you may find that you're on your own in dealing with the claim.
At this point it is critical to seek a personal injury defence lawyer who can advise you on how the claim should be handled. They can review the circumstances around the injury, provide a professional opinion of the prospects of the claim and advise on the potential next steps.
Even if you don't wish to defend the claim and want to admit liability for the accident, a defence solicitor will still be able to make sure a suitable settlement is reached with your best interests in mind.