The Top 5 Misconceptions Jurors Have About Insurers
So just what do jurors 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 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. 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 own 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 on their own (or hearing the "horror stories" of friends and families). A common complaint is the insurance companies 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 a longer time.
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 professional know there is a vast difference between the value of a claim vs. the amount of coverage available for the 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, in other words, automatically equates to bad faith.
While it is trial counsels' job to sift through the jury pool via voir dire, it is imperative that the 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 evaluating the risks and rewards of future litigation. Meanwhile, think of each new claim as an opportunity to educate a potential juror.
