Most people don't know that the person or company listed as the defendant in a law suit, isn’t always the one responsible for paying the compensation that may be awarded in the case.

Truth is, in a lot of cases, including injury, malpractice and accident cases, the “real defendant" is the person or entity's Insurance company. While the defendant may have to show up in court, it's often the insurer that's calling the shots behind the scenes. Insurance is supposed to protect the policyholder from big financial losses.  After all, that’s why you pay hundreds if not thousands in premiums to the Insurance company. 

The basis for this is that most Insurance policies come with a provision called the   

"duty to defend." This means that while the defendant makes those monthly payments, the Insurance company in return, has a duty to take over the legal defense when a claim is made. So, even if the defendant isn't at fault, the Insurance Company has to deal with their lawyers, pay the legal fees, settle or pay any judgment entered against the defendant.

But here's the catch: The Insurance Companies’ standard playbook is to find a way to avoid payment on a claim or to pay out as little as possible and continue to maximize their profits. This means the Insurance company has a lot of control over how the case goes.  So even when the defendant wants to settle the claim, the Insurance company is often the one calling the shots.

So, let’s say someone is involved in a construction, airplane, truck, car, motorcycle or trip and fall accident and the injured party sues for damages. While the owner, operator or driver might be named in the lawsuit, it's actually their Insurance company that will cover the legal fees and any damages that are awarded. The same goes for corporate owners of big businesses, like office buildings, apartment buildings, big box stores, airlines, trucking companies or even medical facilities. In a construction accident case for example, the construction company might be the one getting sued, but their Insurance company is the one covering the legal defense and any settlement or judgment costs.

So, what does all this mean for the person or business being sued? While they're technically the defendant, the Insurance company is usually the one making most of the decisions.  The person or business being sued might not have as much say in the outcome as they think. This can sometimes leave the defendant with less control over the outcome of the case, than they might wish to have.

Ultimately, on a case-by-case basis, the Insurance company, hopefully in consultation with their insured, decides whether it's worth going to trial, in the hopes of getting a defense verdict or avoid the risk of paying more with a settlement.  Again, while the defendant might feel like they're in the driver's seat, it's really the Insurance company navigating the ultimate direction of their case.