A personal injury lawsuit and a personal injury claim are closely related but have some important differences. Personal injury attorneys can help guide you through both, making sure you understand your options and the best path forward if you’ve been hurt because of someone else’s negligence. Here’s a quick breakdown of the key differences between the two.

Filing a Personal Injury Lawsuit

A personal injury lawsuit is a civil court case filed against the party responsible for causing your injuries and damages. Figures from the Department of Justice say there were 141,682 personal injury tort cases filed in 2021. The lawsuit initiates a legal process for determining fault and seeking compensation through the court system.

Lawsuits are filed by plaintiffs (those initiating the case) against one or more defendants (those being sued). In a personal injury lawsuit, the plaintiff is the injured victim, and the defendant is the negligent party, such as an individual, business, or other entity.

The lawsuit filing outlines the plaintiff’s allegations and requests relief in the form of economic and non-economic damages. Economic damages cover quantifiable losses like medical bills and lost income. Non-economic damages cover subjective losses like pain and suffering.

The defendant must respond to the lawsuit within a set timeframe with their defense. From there, an exchange of information and evidence occurs during a discovery phase. This leads to either a settlement or a trial where a judge or jury decides the outcome.

Making an Insurance Claim

An insurance claim is filed directly with an insurance company to seek payment for losses and damages under an existing insurance policy. For example, you may file a claim on your car insurance after an accident or file a claim on a business’s liability policy after getting injured on their property. Business liability tort cases costs US businesses $347 billion in 2021, a 19% increase on the previous year. 

The claims process involves notifying the insurer of your intent to file, providing necessary documentation to support your claimed losses, and allowing the insurer time to investigate and determine if your claim is valid based on the policy terms.

The insurer may then choose to settle your claim by making a payout offer, or they may deny the claim if they don’t find it valid. You have the right to appeal a full or partial claim denial by providing additional proof to support your claim.

Key Differences

• A lawsuit is filed in civil court against a negligent party, while a claim is filed directly with an insurer under an existing policy.
• Lawsuits aim to establish legal liability and fault, while claims focus on coverage and compensation under an insurance policy.
• Settlements and awards from lawsuits can be higher since they are not limited by policy limits.
• A lawsuit can take months or years to resolve, while claims may be settled more quickly in weeks or months depending on complexity.
• Plaintiffs have the burden of proof and must demonstrate how the defendant was negligent and directly caused their damages. Claimants must show their damages are covered losses under the policy terms.
• Lawsuits allow for judgments enforceable through the court system. Unpaid or denied claims typically require additional legal action for recourse – one survey found that 1 in 5 adults had a health insurance claim denied and 7% of workers comp claims are initially denied. 

Determining the Best Route

An experienced personal injury attorney can evaluate your case specifics and advise the best path forward to maximize your recovery. They can also handle negotiations and litigation throughout the legal process on your behalf.