You prepare a report to the Board of Directors, confident of the kudos that will follow. After describing your successful efforts, one of the Directors casually asks you how much of the attorneys' fees and settlement payment will be covered and reimbursed by the company's insurance. If you don't know the answer to these questions, you may be in trouble. Because you probably didn't alert your insurance broker and carrier of the suit, its progress, the settlement overtures and the result. Suddenly, you're not so pleased.
Automobile insurance provides a simple model of how such coverage works.
You call your insurance company and inform them of the accident. You answer your agent's questions, complete some forms, and allow an insurance agent to photograph your car. Your insurance carrier. The insurance company. Your insurance company.