If you or you know someone who lost a loved one in an accident or medical malpractice, you may be entitled to compensation for your pain and suffering. This compensation is often provided by insurance companies in wrongful death claim settlements. However, while they provide financial relief to grieving families, their involvement complicates the legal process that can be emotionally challenging for survivors. Therefore, understanding and being prepared for how insurance companies operate in these cases is necessary for families fighting wrongful death claims.
Discover the role of insurers in wrongful death claims, their strategies, and how families can work through the obstacles to secure fair compensation. If you lost a loved one due to an accident and need to file a wrongful death claim, a Nashville wrongful death attorney can help guide you through the legal process.
Contents
The Insurance Company’s Role in Wrongful Death Claims
In wrongful death cases, insurance companies are typically involved when the at-fault party has coverage that applies to the incident. For example:
- Auto Insurance: In car accidents, the at-fault driver’s liability insurance may cover damages for wrongful death.
- Homeowner’s Insurance: In cases involving premises liability, such as fatal slip-and-fall accidents, the property owner’s insurance may provide coverage.
- Business Insurance: If the death occurred due to negligence on the part of a business, its liability policy may come into play.
- Medical Malpractice Insurance: When a death results from a healthcare provider’s negligence, their malpractice insurance is responsible for compensating the family.
The insurer’s role is to evaluate the claim, determine liability, and negotiate or litigate a settlement. However, their ultimate goal is to minimize the amount paid out, which can lead to complications for families seeking full compensation.
How Insurers Can Complicate Wrongful Death Cases
Insurance companies are businesses, and their primary aim is to protect their bottom line. While they are obligated to act in good faith, they often use tactics to reduce or deny claims. Here’s how insurers can complicate wrongful death cases:
- Disputing Liability
One of the most common tactics is to argue that their policyholder was not entirely or primarily at fault for the incident. For example, in a fatal car accident, the insurer may attempt to place partial blame on the deceased, invoking Tennessee’s comparative fault rule to reduce or eliminate the payout. - Undervaluing the Claim
Insurance adjusters may offer a settlement that is far less than what the family is entitled to. They often undervalue non-economic damages like pain and suffering or loss of companionship, focusing only on tangible costs such as medical bills or funeral expenses. - Delaying the Process
Insurers may delay claim processing to pressure families into accepting a lower settlement. Prolonged delays can be emotionally taxing for families already dealing with grief and financial strain. - Exploiting Policy Limitations
Insurers often attempt to limit payouts by pointing to policy caps or exclusions. For instance, if the at-fault party has minimal coverage, the insurer may claim that the family cannot recover beyond those limits, even if the damages far exceed the policy’s value. - Using Recorded Statements Against Claimants
Families may unknowingly provide statements to insurance adjusters that are later used to weaken their case. Insurers are trained to ask questions that elicit responses they can use to shift blame or downplay damages.
How Insurers Can Help Resolve Cases
Despite these challenges, insurance companies also play a vital role in providing compensation when they act in good faith. Here’s how insurers can help resolve wrongful death cases:
- Offering Settlements
In many cases, insurers will negotiate a fair settlement to avoid the costs and uncertainties of litigation. For families, a well-negotiated settlement can provide timely financial relief without the need for a prolonged court battle. - Paying Policy Limits
If liability is clear, insurers may quickly pay out the maximum limits of the at-fault party’s policy. In cases with higher policy caps, this can significantly ease the financial burden on grieving families. - Facilitating Mediation
Insurers often participate in mediation to resolve claims efficiently. Mediation allows both parties to negotiate with the help of a neutral third party, often leading to a fair and expedient resolution.
How Families Can Protect Their Rights
To navigate the complexities of dealing with insurance companies in wrongful death claims, families should take the following steps:
- Avoid Dealing Directly with Insurers
Insurance adjusters work for the insurer, not for the family. Families should avoid providing recorded statements or signing documents without consulting an attorney. - Hire an Experienced Wrongful Death Attorney
A knowledgeable attorney can handle all communication with the insurer, ensuring that the family’s rights are protected. They can also build a strong case to counter any attempts to deny or undervalue the claim. - Understand Policy Limits
While policy limits can restrict payouts, attorneys can explore other avenues for compensation, such as additional policies or lawsuits against third parties. - Be Prepared for Litigation
If insurers refuse to offer a fair settlement, families should be prepared to take the case to court. A skilled attorney can present compelling evidence to secure a favorable outcome.
What to Remember
While insurance companies provide the financial resources families need, they also work to protect their own interests, often at the expense of grieving survivors. By understanding how insurers operate and working with an experienced wrongful death attorney, families can overcome these challenges and secure the compensation they deserve.
