If you have been sued for defamation or libel, you need to hire an attorney who understands and has experience handling these kinds of cases, especially if it involves Internet defamation. Obviously, you cannot expect a good result if the attorney spends most of their time handling other areas of law. Unfortunately, a good lawyer will require an upfront payment in the thousands of dollars, called a “retainer.” But the reality is that most people do not have the necessary funds to hire an attorney, much less a top defamation defense attorney. This creates a situation where you are unable to defend yourself—and the consequences can be extremely bad, including a judgment against you in the hundreds of thousands of dollars (if not more), damage to your credit, wage garnishment, and the loss of your home, in extreme cases.
But there is a little-known way to potentially save yourself thousands of dollars, if you have certain kinds of insurance.
Here are some basic legal principles so that you understand how it works. When you purchase homeowner’s insurance, for example, you enter into an agreement with the insurance company. That agreement basically states that if you meet your obligations under the agreement to pay the premiums, then the insurance company will cover any claims that qualify for coverage under the agreement. If an insurance is required to cover the claim, they generally will have a duty to defend and a duty to indemnify. The duty to defend means that the insurance company has the obligation to hire a lawyer to defend you and to pay that lawyer’s legal fees and any costs associated with defending a lawsuit. The duty to indemnify means that the insurance company has the responsibility to pay the other side money to settle the case or pay any judgments that are awarded against you, assuming the amounts are within policy limits.
Unfortunately, most defamation cases are not covered under standard homeowner’s insurance policies, unless you purchased a special rider to cover such cases. Regardless, if you are sued, you should make a claim as soon as possible. If the insurance company covers the claim, congrats, they will defend and indemnify you, which can save you thousands, if not hundreds of thousands of dollars. But if they deny the claim or question whether they have the responsibility to do so, you should contact our office immediately. Do not wait. In many cases, we can persuade the insurance company to pay for a lawyer of your choice and to indemnify you.
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