When someone is injured on another person’s property in New Jersey — whether in a slip and fall, dog bite, or a structural accident — the case typically falls under premises liability law. However, what happens after the injury often depends less on the property owner directly and more on their insurance company. Understanding how insurers handle these claims can help victims protect their rights, avoid common pitfalls, and pursue fair compensation for their injuries.
The Role of Insurance in Premises Liability Claims
Most property owners in New Jersey — whether they own a home, business, or rental property — carry liability insurance. This insurance covers injuries that occur on the property due to the owner’s negligence. Once an accident is reported, the insurance company steps in to investigate, determine fault, and decide how much, if anything, they will pay. Although insurance may seem like a safety net for victims, insurers are ultimately businesses focused on minimizing payouts, not maximizing justice.
Initial Investigation and Claim Evaluation
When a premises liability claim is filed, the insurer immediately assigns an adjuster to the case. The adjuster’s job is to gather facts about the incident — including accident reports, witness statements, photos, and medical records. They may even visit the site of the accident to document conditions. While this may seem neutral, the adjuster’s real purpose is to protect the insurance company’s interests. Their goal is to find reasons to deny or reduce the claim.
For example, they may argue that the hazard was open and obvious, that the injured person was partially at fault, or that the property owner had no prior knowledge of the danger. In New Jersey, the state’s comparative negligence rule allows an insurer to reduce compensation if the victim is found partly responsible. If a court finds the injured party more than 50% at fault, they may receive nothing at all.
Medical Documentation and Damage Assessment
Insurance companies heavily scrutinize medical records to assess the severity and legitimacy of claimed injuries. Delays in seeking medical care, inconsistent reports, or preexisting conditions can all be used to question the validity of a claim. This is why injured individuals must seek medical attention immediately and keep detailed records of every visit, test, and treatment.
Insurers will also assess other damages — including lost wages, pain and suffering, and long-term rehabilitation needs — but they often undervalue these non-economic losses. They rely on formulas or computer programs that may not fully account for the human cost of the injury.
Settlement Negotiations
Once the insurer completes its investigation, it will often make a settlement offer. This initial offer is usually far lower than the claim’s real value. Insurance companies expect victims to accept quickly, especially if they are struggling with mounting medical bills. However, accepting a low offer can permanently limit recovery — once a settlement is signed, the victim gives up the right to sue later, even if new complications arise.
An experienced premises liability attorney can negotiate with the insurer, present stronger evidence, and demand a fair settlement. Attorneys understand how insurance adjusters think and can counter tactics designed to minimize payouts.
When Insurers Deny or Delay Claims
Some insurers deny claims outright, arguing that the property owner was not negligent or that the injured person assumed the risk. Others use delay tactics — requesting additional documents, ordering repeated medical evaluations, or stalling communication. These strategies are meant to frustrate victims and pressure them into dropping the claim or settling cheaply.
New Jersey law prohibits bad faith insurance practices. If an insurer unreasonably delays or denies a valid claim, the victim may be entitled to additional damages. Filing a bad faith claim can compel the insurer to act fairly and compensate the injured person properly.
Litigation as a Last Resort
If negotiations fail, the next step is litigation. Once a lawsuit is filed, the insurer provides legal representation for the property owner. Even then, the company often continues to negotiate behind the scenes, as trials can be costly and unpredictable. Many premises liability cases settle before reaching court — but only after persistent legal pressure.
Conclusion
Insurance companies play a central role in premises liability cases, but their interests rarely align with those of injured victims. Their primary objective is to limit payouts, not ensure justice. Anyone injured due to unsafe property conditions in New Jersey should seek legal guidance before dealing directly with an insurer. A qualified personal injury attorney can handle negotiations, identify bad faith tactics, and fight for full compensation. Knowledge, preparation, and strong representation are the keys to overcoming insurance company strategies and achieving fair recovery after a preventable accident.