Does Insurance Cover Wrongful Death?

Losing a loved one is an emotionally devastating experience, made even more challenging when their death is the result of someone else’s negligence or wrongful actions. In such tragic circumstances, families often seek justice and financial compensation through legal avenues. 

One common question that arises in these situations is whether insurance covers wrongful death. Let’s delve into this complex topic to understand the nuances of insurance coverage in cases of wrongful death. For more information about your potential claim, contact the Louisville wrongful death lawyers at McCoy & Hiestand now.

Understanding Wrongful Death

Before delving into insurance coverage, it’s crucial to understand what constitutes wrongful death. Wrongful death occurs when a person dies due to the negligent, intentional, or reckless actions of another party. This can include incidents such as car accidents caused by a drunk driver, medical malpractice, workplace accidents, defective products, or even criminal acts.

Types of Insurance Coverage

Insurance coverage for wrongful death typically falls under several categories:

• Auto insurance: In cases where wrongful death results from a car accident, auto insurance may provide coverage. Most states require drivers to carry liability insurance, which covers bodily injury and property damage caused by the insured driver. However, the extent of coverage can vary based on policy limits and the specifics of the accident.
• Homeowner’s insurance: If the death occurs on someone’s property due to negligence, homeowner’s insurance may provide coverage. For example, if a guest dies in a slip-and-fall accident or due to a dog bite on the homeowner’s property, the homeowner’s insurance policy might cover the resulting liability.
• Medical malpractice insurance: Healthcare professionals and facilities carry medical malpractice insurance to cover damages in case of negligence leading to injury or death. If a wrongful death occurs due to medical malpractice, this insurance may come into play to compensate the victim’s family.
• Life insurance: While not directly related to the actions of a third party, life insurance policies provide financial protection to the deceased’s beneficiaries in the event of death. The beneficiaries receive a lump sum payment, which can help cover expenses and provide financial support after the loss of a loved one.
• Product liability insurance: Manufacturers and sellers often carry product liability insurance to cover damages resulting from defective products. If a faulty product causes a wrongful death, the manufacturer’s insurance policy may provide compensation to the victim’s family.
• General liability insurance: Businesses and organizations typically carry general liability insurance to protect against various liabilities, including wrongful death claims. This coverage can apply if a death occurs on the premises or as a result of the business’s operations.

Limitations and Exclusions

While insurance coverage exists for wrongful death in various forms, it’s essential to recognize that there are limitations and exclusions within insurance policies. These may include:

• Policy limits: Insurance policies have coverage limits, meaning they only pay up to a certain amount for covered claims. If the damages exceed these limits, the responsible party may be personally liable for the remaining amount.
• Exclusions: Insurance policies often contain exclusions for intentional acts or certain types of negligence. For example, a car insurance policy may not cover damages if the insured driver was driving under the influence of alcohol or drugs at the time of the accident.
• Coverage disputes: Insurance companies may dispute claims or deny coverage based on policy interpretation, alleging that the incident falls outside the scope of coverage or that the insured party acted in a way that voids coverage.
• Subrogation: In some cases, insurance companies may seek reimbursement from any damages awarded in a wrongful death lawsuit if they have already paid out benefits related to the incident.

Legal Recourse Beyond Insurance

If insurance coverage is insufficient or unavailable, or if a dispute arises regarding coverage, families of wrongful death victims may pursue legal recourse through a civil lawsuit. This involves filing a wrongful death claim against the responsible party to seek compensation for damages such as medical expenses, funeral costs, lost income, pain and suffering, and loss of companionship.

In such lawsuits, the burden of proof rests on the plaintiff (the deceased’s family), who must exhibit that the defendant’s actions or negligence directly caused the death and that the surviving family members have suffered measurable damages as a result.

Contact McCoy & Hiestand to Learn More About Wrongful Death Cases

Insurance coverage for wrongful death exists in various forms, including auto insurance, homeowner’s insurance, medical malpractice insurance, life insurance, product liability insurance, and general liability insurance. However, coverage limits, exclusions, and disputes may impact the extent to which insurance provides compensation in these cases.

While no amount of compensation can fully alleviate the pain of losing a loved one, obtaining fair and adequate compensation can help alleviate financial burdens and provide a sense of closure as families work to rebuild their lives in the wake of tragedy. If you need help with your wrongful death case, contact McCoy & Hiestand now.