Losing a loved one due to someone else’s negligence is one of the most devastating experiences any family can face. In New Jersey, when a death occurs because of another party’s wrongful act—whether it’s a car accident, medical malpractice, or workplace incident—the family may file a wrongful death claim to seek justice and financial compensation. However, dealing with insurance companies during this process can be challenging. Their goal is often to protect their own bottom line, not to ensure that families receive the full amount they deserve. Understanding how insurers handle wrongful death claims can help families navigate the process with confidence and avoid common pitfalls.
The Role of Insurance in Wrongful Death Claims
In most wrongful death cases, compensation is ultimately paid through an insurance policy. Depending on the cause of death, this may include:
- Auto insurance (for car, truck, or motorcycle accidents)
- Homeowners’ insurance (for premises liability or accidents on private property)
- Medical malpractice insurance (for negligence by healthcare providers)
- Commercial liability insurance (for accidents involving businesses or construction sites)
Insurance companies step in to defend the person or business responsible and to negotiate—or contest—the payout to the victim’s family.
How Insurers Approach Wrongful Death Claims
When an insurer receives notice of a potential wrongful death claim, their first step is often to launch an investigation. This may include reviewing police reports, medical records, and witness statements, as well as sending their own adjusters or experts to evaluate the evidence. Their objective is not to help the grieving family but to determine how to limit liability and reduce compensation.
Common tactics include:
- Disputing liability: Insurers may argue that their policyholder was not at fault or that the deceased shared part of the blame for the incident.
- Minimizing damages: Adjusters often downplay the financial and emotional impact of the loss, offering settlements that fail to account for the family’s long-term needs.
- Delaying payments: Insurance companies may intentionally slow down the claims process, hoping the family will accept a lower offer out of financial desperation.
- Using recorded statements: Families are sometimes asked to provide statements that can later be used against them to undermine their claim.
These strategies highlight why it is important to avoid direct negotiations with insurers without legal representation.
Determining the Value of a Wrongful Death Claim
Wrongful death claims are complex because they involve both economic and non-economic damages. Insurance companies evaluate the claim based on factors such as:
- The deceased’s age, health, and expected lifespan.
- Their income, earning potential, and financial contributions to the family.
- The cost of medical care and funeral expenses.
- The emotional and psychological loss suffered by surviving family members.
However, insurers often undervalue non-economic damages—like grief, loss of companionship, and emotional suffering—because these are harder to quantify. Families need experienced attorneys and expert witnesses, such as economists or vocational experts, to accurately demonstrate the full extent of their losses.
The Role of Legal Representation
Insurance companies have teams of lawyers and adjusters working to protect their financial interests. Families pursuing wrongful death claims in New Jersey deserve the same level of advocacy. A skilled wrongful death attorney can:
- Handle all communications and negotiations with insurers.
- Gather evidence and expert testimony to prove liability and damages.
- Ensure the claim meets all New Jersey legal requirements, including filing deadlines.
- Take the case to court if the insurance company refuses to offer a fair settlement.
By handling these critical tasks, attorneys allow grieving families to focus on healing while ensuring they are not pressured into unfair agreements.
Conclusion
Wrongful death claims in New Jersey are emotionally and legally complex, especially when insurance companies prioritize profit over compassion. While insurers may appear cooperative, their main objective is often to limit payouts. Understanding how they operate—and having strong legal representation—can make all the difference. With the guidance of an experienced attorney, families can protect their rights, secure full and fair compensation, and honor their loved one’s memory through justice and accountability.