How Insurance Companies Are Involved in Wrongful Death Lawsuits

The loss of a loved one is an emotional experience, and when that loss is due to someone else’s negligence or misconduct, the situation can become even more distressing. When someone’s negligence or misconduct causes a person’s death, a wrongful death lawsuit can be brought. What some people do not understand is that, when working through the wrongful death lawsuit process, insurance companies are often involved. This is because they may be responsible for covering the financial liabilities associated with such claims

While pursuing justice and compensation can provide some solace, dealing with insurance companies can add a layer of complexity to an already challenging time. This post explores how insurance companies handle wrongful death claims and how you can navigate this process to achieve the compensation you deserve.

What Are Wrongful Death Lawsuits?

When a party brings a wrongful death lawsuit, they seek compensation for the survivors’ losses and damages resulting from the deceased’s death. Common types of wrongful death claims include vehicle accidents, medical malpractice, workplace accidents, and defective products.

The primary purpose of a wrongful death lawsuit is to provide financial relief and justice. The plaintiff must prove that the defendant’s actions directly caused the death and that the death led to harm. 

In these cases, plaintiffs can seek damages for various losses, including funeral expenses, lost income, loss of future earnings, and emotional suffering. The amount of compensation depends on the specific circumstances of the case, including the deceased’s age, earning potential, and the impact on the survivors.

The process typically involves legal proceedings. The case might go to court–where a judge or jury hears evidence. Alternatively, the parties might settle; this means that they forego court for a certain amount of money.

Why Do Insurance Companies Get Involved In Wrongful Death Lawsuits?

From the insurance company’s perspective, wrongful death lawsuits involve carefully managing and assessing claims, mitigating risks, and paying out the least amount of money while complying with policy terms and legal requirements. When a wrongful death claim arises from an incident that is covered by insurance, such as a vehicle accident or medical malpractice, the responsible party’s insurer might be liable for damages. The insurance company steps in to handle the financial aspects of the claim, which includes compensating the deceased’s family up to the policy limits. Insurance companies often aim to pay as little as possible in wrongful death lawsuits to minimize their financial liability. By controlling costs and minimizing payouts, insurance companies work to protect their financial interests.

What Are the Ways that Insurance Companies Get Involved In Wrongful Death Lawsuits?

Claims Process: Insurance companies are involved in processing claims related to wrongful death. They will assess the claim, investigate the circumstances of the death, and determine the amount of compensation due under the policy.

Defense Representation: If the case goes to court, the insurance company may provide legal defense for the policyholder, especially if the policyholder is named as a defendant in the wrongful death lawsuit. They may hire legal representation and cover legal costs up to the policy limits.

Liability Coverage: If the wrongful death claim arises from an incident involving a vehicle accident, medical malpractice, or other incidents covered by insurance, the insurance company of the responsible party might be liable for damages. For instance, if a driver caused a fatal accident and had auto insurance, the driver’s insurance company might be responsible for paying compensation to the deceased’s family.

Policy Limits: The compensation available in a wrongful death lawsuit can be affected by the policy limits of the responsible party’s insurance. If the damages exceed the policy limits, the plaintiff might need to pursue additional compensation from the responsible party directly or from other sources.

Settlement Negotiations: Insurance companies are usually involved in negotiating settlements in wrongful death cases. They may offer a settlement amount to the plaintiff’s attorney in an attempt to resolve the claim without going to court. Settlements provide a quicker resolution and help manage financial risks for the insurer while potentially offering compensation to the plaintiff’s family. The amount and terms of the settlement will be influenced by the insurance policy limits and the facts of the case. Often, the insurance company will offer a low settlement with the hope that it will be accepted to avoid court and pay less than they may have to if the case goes in front of a judge or jury.

Subrogation: Sometimes, insurance companies may seek reimbursement from the responsible party or their insurance if they have paid out on a claim. This is known as subrogation. Subrogation allows insurers to recoup expenses and maintain lower premiums for policyholders.

What Should I Hire a Wrongful Death Attorney?

A wrongful death lawyer is crucial for helping you navigate the complexities of insurance companies and maximizing your compensation. Strong wrongful death attorneys will understand common insurance company tactics. They know what strategies they use to undervalue claims. These attorneys will also work to ensure that all damages are accounted for and that you receive fair compensation. Additionally, wrongful death attorneys will walk you through the legal process, managing all aspects of the legal process, including filing claims, negotiating settlements, and representing you in court.

Contact an Experienced Wrongful Death Lawyer

Dealing with insurance companies in a wrongful death lawsuit can be daunting, but with the right approach and support, you can navigate this challenging process and seek the justice and compensation you deserve. Gathering comprehensive evidence, understanding the value of your claim, consulting with an experienced lawyer, and avoiding common pitfalls are key steps to achieving a favorable outcome. If you’ve lost a loved one due to negligence, consider reaching out to a wrongful death lawyer who can guide you through the legal process and advocate for your rights. By doing so, you can focus on healing and honoring your loved one’s memory while pursuing the compensation necessary to support your family.