Privilege and Work Product
Attorney-Client Privilege
In insurance defense, the carrier retains and pays counsel to represent the insured. Jurisdictions differ on whether counsel has one client, the insured, or two clients, the insured and the insurer.
The arrangement affects who holds the privilege, what counsel may report to the carrier, and how conflicts are managed.
Alternative Names:
Insurer-Insured-Counsel Relationship, Three-Way Relationship
Why it Matters?
The single-client and dual-client frameworks produce different answers to practical questions counsel face constantly: whether coverage information learned from the insured may be shared with the carrier, whether the carrier can direct settlement against the insured's wishes, and whether the claim file is privileged in later bad faith litigation. Counsel should know which framework the jurisdiction applies before the first status report.
Frequently Confused with
Related terms
Frequently asked questions
Who is defense counsel's client?
Can counsel report coverage information to the carrier?
