Why Are Some Wrongful Death Claims Denied by Insurance Companies?
It can be incredibly frustrating to find out a wrongful death claim has been denied, especially when you believe the evidence is clear.
These claims are sometimes rejected because the insurance company disputes who was at fault, says the loss is not covered under the policy, or claims the documentation is incomplete. A wrongful death case often involves layers of investigation, and missing even one piece of information can give the insurer a reason to delay or deny the payout.
Common Reasons Insurance Companies Deny Wrongful Death Claims
It is not unusual for insurance companies to deny claims even when the facts seem clear. Some denials are based on technical details buried in the policy, while others come from disagreements about how the death occurred. Below are some of the most common reasons families face rejection after filing a personal injury claim.
Disputes Over Fault or Coverage Limits
When the cause of death is unclear or the insurance company believes someone else is to blame, they may refuse to pay. Even in cases where responsibility seems obvious, the insurer might argue that the policy does not apply or that damages exceed what the policy covers. These arguments can stall a claim or result in a full denial if not challenged properly.
Delays in Reporting or Alleged Procedural Errors
Insurance companies often deny claims based on technicalities, especially if they believe the proper steps were not followed. They may cite a missed reporting deadline, an incomplete form, or a failure to provide certain documents on time. These kinds of denials are frustrating, especially for families focused on grieving, not paperwork.
Policy Language and Case Types That May Increase Denial Risk
Insurance companies often lean on technical policy language when looking for reasons to deny a claim. Some wrongful death cases are more likely to trigger extra scrutiny when the facts involve disputed fault, complicated timelines, or coverage limitations. Here are examples of claim types where denials tend to happen more often:
- Intentional harm exclusions
- Pre-existing condition arguments
- Substance use involvement
- Excluded driver coverage
- Car accident liability shifts in personal injury claims
- Unlisted beneficiaries
- Workplace fatalities involving third parties
Who can file a wrongful death claim and how it gets reviewed often depends on the details of the policy and state law. Under 740 ILCS 180/2, certain family members are legally allowed to bring a wrongful death claim, but insurers may still question their role if the beneficiary is not clearly listed.
How Insurance Tactics Can Delay or Devalue Wrongful Death Compensation
Some insurance companies use delay tactics or strategic blame-shifting to reduce how much they have to pay. These strategies tend to show up more often in high-value claims or cases where emotions are running high.
Minimizing Liability Through Comparative Fault Arguments
One way insurers try to limit what they owe is by arguing that the person who passed away was partly at fault. Even in cases where the facts seem clear, they may point to minor details or past behavior to lower their share of the blame. Under 735 ILCS 5/2-1116, the amount of compensation may be reduced if the deceased is found to be more than 50% responsible.
Offering Early, Low Settlements to Avoid Legal Pressure
Another common tactic is to make an early settlement offer before the full impact of the loss is known. These offers often come with a tight deadline and may seem helpful at first, especially when families are still in shock. In reality, they are usually designed to prevent further investigation and avoid a larger payout later on.