How Insurance Affects Wrongful Death Claims

It’s devastating to lose a loved one due to someone else’s wrongful actions or negligence. Surviving family members may have the right to pursue a wrongful death claim against the responsible parties. You can seek financial compensation for your losses.

These situations can be challenging when involving the responsible party’s insurance company. The insurer’s primary objective is to minimize payouts. This can leave you frustrated as you seek a fair settlement. Having an experienced wrongful death lawyer in your corner can help. Most lawyers can help you understand your legal options with a free case review.

Types of Insurance Policies Involved in Wrongful Death Claims

Knowing how different types of coverage work in wrongful death claims can help you understand what constitutes a fair settlement. Here are common types of insurance policies that may cover losses in a wrongful death case:

• Auto insurance policies: In fatal car accidents, the at-fault party’s car insurance carrier handles the claim. Their insurance may cover wrongful death expenses, depending on their level of coverage.
• Homeowner’s insurance policies: If your loved one was killed in an accident on someone else’s property, you may be able to make a claim with the homeowner’s insurance for wrongful death damages.
• Business liability insurance policies: Many business owners carry liability insurance to cover personal injury and wrongful death claims. For instance, a premises liability claim for an injury occurring at a business can involve a business liability insurance policy.
• Health insurance policies: The decedent’s health insurance policy may pay some or all of their medical bills related to wrongful death. When the responsible party is obvious (or liability isn’t contested), the insurance company may seek to recover these damages from the responsible party.
• Life insurance policies: Life insurance policy beneficiaries can typically still recover life insurance proceeds if the death does not fall under a policy exclusion.

In most wrongful death cases, the defendant (the responsible party) will have liability insurance coverage. In such cases, their insurer is responsible for negotiating a settlement. If the parties can’t settle, the insurer will provide a defense if the case goes to court.

Understanding Policy Limits and Coverage Issues

Insurance companies must cover their customers according to the policy terms. They must handle all covered claims up to the policy limits.

For example, if a responsible party’s policy limit for a claim is $500,000, the insurer must only pay a settlement or judgment up to $500,000. Even if a jury reaches a verdict for $1 million, the insurance company will only be required to pay up to the policy limit of $500,000.

How Insurance Companies Handle Wrongful Death Claims

Insurance companies are for-profit businesses. Their main goal is protecting their financial interests, not the claimants’ interests. They will look for any reason to not pay damages for your losses, including:

• Medical expenses
• Funeral expenses
• Loss of income
• Loss of companionship

Insurance may cover some of the losses depending on the circumstances surrounding the wrongful death. Even if the responsible party has insurance to cover their liability, it may not cover the full extent of losses for emotional distress or pain and suffering.

Common Challenges and How To Overcome Them

Negotiating with an insurance company can be challenging. It’s not uncommon for insurance companies to use tactics to reduce the payout in a wrongful death lawsuit. These tactics can include:

• Disputing liability
• Offering a lowball wrongful death settlement
• Denying or delaying a valid claim
• Requesting excessive documentation
• Pressuring you to accept a low offer

Your best chance to recover the compensation you deserve is by hiring an experienced lawyer. Even when an insurance company acts in good faith, you likely need extensive documentation to prove that the claim falls within the policy, and the damages are justified. Your lawyer can help you through this process.

The Role of Legal Representation in Insurance Claims

Given the tactics you may face from an insurer, having experienced legal representation is critical. A wrongful death attorney can help your family through this difficult time.

Having a lawyer increases your chance of getting fair compensation. Your lawyer will explain your legal rights under state law. In particular, they can help:

• Investigate the claim thoroughly and get the evidence to prove your case
• Provide an accurate valuation of the claim
• Negotiate with the insurance company
• Handle all aspects of litigation, if necessary
• Provide compassionate support throughout the process

Most personal injury attorneys, including wrongful death lawyers, provide free case evaluations. They will advise you on the strength of your case. Remember that wrongful death claims have a statute of limitations. This is the time limit in which you must bring the claim. So, contact a lawyer today for legal help.