California Personal Injury Lawyers Blog
After a fatal accident, an insurance adjuster may tell a family that only a certain amount of coverage is available. That statement raises a different question from how much the family’s losses are worth: Has every potential source of recovery been identified? In a California wrongful death case, reviewing insurance coverage is an essential part of evaluating a proposed settlement.
For a discussion of the losses families may recover, see our article on how wrongful death compensation is calculated. This article focuses on the insurance investigation that should accompany that evaluation.
A Policy Limit Is Not a Valuation of Your Family’s Loss
A liability policy limit generally identifies the maximum the insurer will pay for a covered claim, subject to the policy’s terms. It does not establish the full extent of the family’s damages or necessarily resolve a responsible party’s potential personal liability. Whether additional recovery is available requires a separate investigation.
Look Beyond the First Insurance Policy
The initial claim may involve a driver’s automobile policy, but the circumstances can warrant examining other potentially responsible people or businesses and their coverage. Questions for counsel may include:
- Who owned the vehicle or property involved?
- Was a driver performing work for an employer at the time?
- Did another person or business contribute to the fatal incident?
- Are there additional policies covering the same insured or occurrence?
These questions are investigative starting points. Ownership, employment, or a business relationship alone does not establish liability or guarantee coverage.
Umbrella and Excess Coverage May Matter
An umbrella or excess policy may provide another layer of coverage beyond an underlying policy. The National Association of Insurance Commissioners explains that umbrella insurance can cover certain liability costs exceeding primary insurance. Whether a particular policy applies depends on its wording, exclusions, insured persons, and other conditions. Additional coverage should be investigated rather than assumed.
Review Uninsured and Underinsured Motorist Coverage
When a death results from a motor vehicle collision, counsel should also examine potentially applicable uninsured or underinsured motorist coverage. The California Department of Insurance describes these coverages as protection when an at-fault driver has no insurance or insufficient insurance. Eligibility, limits, claim requirements, and the effect of other payments require careful review. A family’s own policy should not be overlooked simply because another insurer is already handling the collision.
Read the Release Before Accepting a Settlement
A settlement offer should be reviewed together with the proposed release. Counsel should identify exactly which people, entities, and claims would be released and determine whether the agreement could affect other available claims or insurance benefits. Families should obtain advice before signing; an offer described as “policy limits” does not answer those questions by itself.
Questions to Ask About a Policy-Limits Offer
- What documents support the stated coverage limits?
- Have umbrella, excess, and other potentially applicable policies been investigated?
- Are there other potentially responsible parties?
- What rights would the proposed release resolve?
The Law Offices of Gary K. Walch, A Law Corporation has served injured people and families for more than 50 years. If your family is facing an insurance offer after a fatal accident anywhere in California, contact our office for a free consultation about your potential wrongful death claim.
This article provides general information, not legal advice. Coverage and recovery depend on the facts and applicable policy language. Reading this article or contacting the firm does not create an attorney-client relationship.