Do you ever think about managing a case to trial while preparing to take the initial recorded statement of an insured? Most claims professionals do not, and once litigation is initiated and the 'powers that be' decide to move forward with trial, all of a sudden the judge is not the most important person in the courtroom to influence…it is the jury.

Just what do juries think when tasked with evaluating the insurance company as a defendant?

1. Insurance Companies Represent Big, Bad Corporate America

People work for corporations, own stock in them, buy their products and services, and have serious concerns about corporate conduct and the power they possess. Most people want corporations to thrive and to continue to produce both jobs and products. Jurors don't begrudge the corporation a profit, but making a profit off of the public creates special obligations to the public.

The public wants to be able to trust that their insurance company will be there for them when they need it. When an insurance company is a defendant, a juror will immediately wonder what the insurance company did wrong and why. Jurors are remarkably facile at separating an individual from the larger ethic of the company. The assumption is that the insurance company is untrustworthy and has wronged the plaintiff.

2. Premiums Will Automatically Rise If An Award Is Made

Many jurors are skeptical that the plaintiff's claimed damages are real, and even when they believe that a plaintiff is damaged, they may be reluctant to render adequate compensation because they worry that doing so will raise their insurance premiums.

3. Insurance Companies Always Deny Coverage

Everyone has either had a claim denied or knows someone whose insurance claim was denied. The story is always a 'horror story' and the insurance company is the big villain.

4. Insurance Companies Use Delay As A Tactic

Delay, Delay, Delay. Most jurors have had experience in making claims of their own (or hearing the 'horror stories' of friends and family). A common complaint is the insurance company did not act quickly; the adjuster did not return phone calls or emails right away; or the payment of the claim took months. Most people think that the reason for the delay is to discourage claimants from pursuing a claim, to hurt claimant's cases, and to keep the money in the insurer's big, deep pockets for longer.

5. Insurance Companies Thwart Policy Limits Payments At All Costs

Many jurors have policies of their own and bargain for the amount of coverage they wish to pay for. Claims professionals know there is a vast difference between the value of a claim versus the amount of coverage available for a claim. Jurors (and most plaintiff attorneys) view the policy as a contract guaranteeing a specific amount of money for all losses and if not paid, wonder why the insurer isn't paying the amount bargained for; that the failure to pay full policy limits automatically equates to bad faith.

Today's Takeaway

While it is trial counsel's job to sift through the jury pool via voir dire, it is imperative that claims professionals understand what jurors think about insurance companies. Knowing what to expect at trial is integral to properly investigating a claim, determining value and of course, evaluating the risks and rewards of future litigation. Meanwhile, think of each new claim as an opportunity to educate a potential juror.

Special Reports /

The Top 5 Misconceptions Juries Have About Insurers

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