I'll be honest with you - if I were you I would absolutely hope your insurance carrier drops the ball and the plaintiff get an award against you.
Why? Insurance bad faith.Insurance bad faith
is a legal term of art
unique to the law of the United States
that describes a tort
claim that an insured person may have against an insurance company for its bad acts. Under the law of most jurisdictions in the United States
, (Michigan is included) insurance
companies owe a duty of good faith
and fair dealing
to the persons they insure. This duty is often referred to as the "implied covenant of good faith and fair dealing
" which automatically exists by operation of law in every insurance contract. If an insurance company violates that covenant, the insured person (or "policyholder") may sue the company on a tort
claim in addition to a standard breach of contract
claim. The contract-tort distinction is significant because as a matter of public policy, punitive or exemplary damages are unavailable for contract claims, but are available for tort claims. In addition, consequential damages for breach of contract are traditionally subject to certain constraints not applicable to tort actions (see Hadley v. Baxendale
). The result is that a plaintiff in an insurance bad faith case may be able to recover an amount larger
than the original face value of the policy, if the insurance company's conduct was particularly egregious.
So, if the plaintiff gets a default judgment against you - I would immediately file suit against your insurance carrier for "bad faith" and collect a substantial award way above and beyond the $25k the plaintiff is suing for.
As long as you have sent or forwarded on the information - you have done your due diligence and your insurance carrier dropped the ball - "BAD FAITH".
Your cause of action against your insurance company is substantial - way beyond the 25K.
You will not only get the 25K but also punitive damages against your insurer.