Loss of life is a complex part of the human experience, no matter the circumstance, but when another person is at fault, it is even more difficult. Many find it hard to feel they have justice or reach any form of closure unless there is a wrongful death finding. Below, a personal injury lawyer from Wolf Law discusses how insurance companies handle wrongful death claims, which is an important aspect of understanding how the person responsible will pay for their action or inaction.
What Does An Insurance Company Do With A Wrongful Death Claim?
Insurance companies have a duty to investigate each wrongful death claim filed with them. These claims can present many different types of incidents, including:
- Medical malpractice – These claims often arise due to misprescribed medicines that result in unintended health effects or surgical errors.
- Vehicle accident – Claims related to vehicle accidents may involve a person acting on their own behalf or an employee carrying out the duties of their employer.
- Accident at work – Workplace accidents are heavily regulated and investigated, and these claims often arise due to a lack of proper safety controls in a workplace.
- Consumer product defects – If a product does not work as intended or injury occurs from proper and intended use of a product, a claim may arise.
No matter the type of event that caused the claim to arise, one of the first steps an insurance company must take after receiving the claim is to evaluate the coverage the policyholder has with the company.
Evidence Is Critical to Establish What Happened and Who is Liable
The insurance company’s evaluation will include a determination of how much may be covered based on the incident type and the circumstances surrounding the event. They will also turn the case over to an investigator or insurance adjuster to collect as much information as they can about the cause of death and the events leading up to it, including:
- Witness statements – These statements may include individuals present at the time of the relevant incident and others who know the impact of the death on others.
- Police reports – Police are required to complete a report following notification of a wrongful death.
- Medical records – These are more relevant in some cases than in others, but can include critical details about the circumstances surrounding the death.
- Survivor statements – Understanding the emotional and financial impact of a death on those left behind can be very impactful on a case.
Each of these pieces of evidence is critical to a complete evaluation of the pending claim. The insurance company can ensure liability has been properly attributed and the payout amount is appropriate based on the relevant policy.
Potential Compensation in a Wrongful Death Claim
Once the insurance company determines where liability lies, it will establish the overall impact of the wrongful death in terms of money. It does this by evaluating the costs associated with:
- Medical bills
- Costs of a funeral and associated activities
- Lost wages or salary
- Loss of enjoyment
- Loss of companionship for any family members left behind
These decisions are heavily formulaic, based on data from actuaries collected over time, and economists’ evaluation of the current and future market.
Will the Insurance Company Just Pay?
Insurance companies are businesses, and part of the job for the staff members who work on these cases is to reduce the financial liability of the company as much as possible. One way they may attempt to reduce the amount they owe is by stating that the policyholder has limited liability because their action or inaction was a limited factor in the death. The company may also dispute the cause of death itself.
When the legal staff of the insurance company gets involved, they will evaluate the evidence collected and may even argue that the death was not wrongful under applicable law. Insurance companies will seek to enter into negotiations with the claimant in an attempt to reduce the payout as much as possible. The negotiations to reach an agreement can be quite extended and may not result in a resolution.
There is an incentive for insurance companies to participate in negotiations, however, and they generally do so in good faith because a resulting settlement prevents the need for litigation, which itself can be very expensive. Claimants often reply to an initial settlement offer with a counteroffer and restate the burden created by their loved one’s death. The burdens are often focused on emotional damages and financial stresses.
What if the Insurance Company and the Claimant Cannot Reach a Settlement?
When negotiations between the insurance company and the claimant fail, the only available solution is to pursue the matter in court. During a trial for a wrongful death claim, the judge and jury will hear the facts of the case and review the evidence presented to determine whether the claim itself has validity. If it finds liability, the court will determine how much compensation is appropriate.
Insurance companies may hope to reduce their payout upon a finding of liability by asserting that the deceased person had some part in their death.
The company may also question whether the claim is valid. In the end, the lawsuit itself may last for quite some time, but a finding of liability in favor of the claimant often results in large payouts for those left behind following the wrongful death.
Get Help Understanding Texas Law Regarding Wrongful Death Insurance Claims
Regardless of whether there is a settlement or the matter goes to a trial, insurance companies will be putting their financial interests first. In the end, every claimant in a wrongful death matter should remain aware of the circumstances surrounding the fatal event and be sure to partner with a strong legal advocate throughout the claim process.
If you are planning to file, or have already filed, a wrongful death claim after the loss of a loved one, Wolf Law, PLLC can bring its knowledge of the inner workings of insurance companies’ processes to benefit you and take some of the stress away from the claim.