There’s a secret that insurance companies don’t want you to know. In almost all Cape Cod negligence cases, one or both parties have insurance of some type. For example, in a car accident case, the defendant most likely has a policy of motor vehicle accident liability insurance, and his or her defense is being paid for by that insurance company. If a verdict is entered against him or her, it is the insurance company – not the defendant – that will actually pay out the money for the judgment.
Insurance companies want you to believe this legal fiction because they believe that, if a juror is aware that the verdict will be paid by an insurance company instead of a real person, the juror will be more likely to find in the plaintiff’s favor – and more likely to award a more sizable verdict if they don’t think the defendant will be paying the verdict out of his or her own pocket.
Sometimes, an insurance company may actually be the plaintiff in a lawsuit and still want its identity to be kept secret. For example, if an insurance company pays out a claim, it may then file a subrogation claim against the person or persons who caused the loss. Even then, the insurance company doesn’t want you to know of its involvement in the case because of the fear that such knowledge would taint the outcome against it.