Personal counsel is retained by the insured at their own expense to protect interests the appointed defense may not fully represent, particularly regarding excess exposure and coverage positions.
It differs from independent counsel the carrier must fund.
Alternative Names:
Insured's Personal Counsel, Private Counsel
Why it Matters?
An insured facing exposure above policy limits has interests appointed counsel cannot fully serve, particularly regarding settlement demands within limits that the carrier may reject. Personal counsel monitors that exposure and preserves the insured's bad faith position. Defense counsel should recognize when the insured needs that advice and communicate the excess exposure clearly, since failing to do so is itself a malpractice concern.
Frequently Confused with
Related terms
Frequently asked questions
When does an insured need personal counsel?
Who pays for personal counsel?
