When a loved one tragically dies due to someone else's negligence or misconduct, families often pursue wrongful death claims to seek justice and financial relief. These claims aim to provide compensation for the devastating losses that surviving family members face, including the loss of income, companionship, and emotional support. However, one pressing question often arises: Where does the awarded compensation in a wrongful death case come from? Understanding the sources of compensation can clarify the legal process and help families navigate their claims more effectively.

Understanding Wrongful Death Claims

Wrongful death claims are civil lawsuits brought by surviving family members or representatives of the deceased person's estate. These claims occur when someone dies due to another party's negligent, reckless, or intentional actions. Common causes of wrongful death include car accidents, medical malpractice, workplace accidents, defective products, and criminal acts.

In such cases, compensation is awarded to the survivors for both economic and non-economic losses. Economic damages often include funeral expenses, medical bills incurred before death, and the loss of financial support, while non-economic damages cover intangible losses like pain and suffering and loss of companionship.

Sources of Compensation in Wrongful Death Cases

The compensation awarded in a wrongful death case typically comes from one or more of the following sources:

1. Insurance Policies

Insurance coverage often plays a primary role in funding compensation for wrongful death claims. Depending on the circumstances of the case, the liable party's insurance policy may be the source of the payment. Common types of insurance that cover wrongful death claims include:

• Auto Insurance: If the wrongful death was caused by a car accident, the at-fault driver's auto insurance policy may cover the damages. Majority of the states require drivers to carry liability insurance, which is used to compensate victims or their families in such cases.
• Homeowners' or Renters' Insurance: In cases where a wrongful death occurs on someone's property due to unsafe conditions, the property owner's liability insurance may cover the claim.
• Professional Liability Insurance: When wrongful death results from medical malpractice or professional negligence, the responsible individual's malpractice insurance or professional liability policy typically provides the compensation.
• Commercial Liability Insurance: If the death occurs at a business or involves a company, the business's commercial liability insurance may be a source of funds.

Insurance companies generally aim to settle claims out of court, but the compensation they offer may not fully cover the family's losses. This is why consulting an attorney is essential to ensure fair compensation.

2. The Personal Assets of the Liable Party

In some cases, the liable party's personal assets may be used to pay wrongful death compensation. This usually happens if the damages exceed the limits of their insurance policy or if they lack insurance coverage altogether. Courts may order the sale of assets, garnishment of wages, or other measures to satisfy the judgment.

For example, if a wrongful death occurs due to a criminal act and the perpetrator does not have insurance or sufficient coverage, their personal assets may be seized to provide compensation to the victim's family. However, collecting from personal assets can be challenging, especially if the liable party has limited resources.

3. Employer or Corporate Liability

When a wrongful death occurs in the workplace or involves a defective product, an employer or corporation may be held liable. Companies are required to carry liability insurance or workers' compensation insurance that can provide funds for wrongful death claims. For instance:

• Workplace Accidents: If the death results from an unsafe working environment or equipment failure, workers' compensation insurance may provide death benefits to the family. In cases of gross negligence, families may also pursue third-party claims against contractors, equipment manufacturers, or other entities.
• Defective Products: When a product defect leads to wrongful death, the manufacturer, distributor, or retailer may be responsible for compensating the victim's family. These funds often come from the company's liability insurance.

4. Government Compensation Programs

In rare cases, compensation may come from government programs, especially if the wrongful death results from a crime or the negligence of a government employee or agency. Some states offer crime victim compensation funds to support families in need, though these payments are often supplemental to other sources of recovery.

Challenges in Recovering Compensation

While there are multiple potential sources for wrongful death compensation, securing these funds is not always straightforward. Insurance companies often attempt to minimize payouts, and personal assets may be difficult to access if the liable party has limited resources. Additionally, identifying the appropriate parties to hold liable can require thorough investigation and legal expertise.

Families should work with an experienced wrongful death attorney who can:

• Assess the value of the claim, including economic and non-economic damages.
• Identify each potential source of compensation, such as insurance policies, personal assets, or corporate liability.
• Negotiate with insurers or represent the family in court to secure a fair settlement or judgment.

Key Statistics and Insights

• According to the National Safety Council, accidental deaths are the third leading cause of death in the United States, underscoring the prevalence of wrongful death claims.
• In cases of medical malpractice, the average payout for wrongful death claims is approximately $386,000, according to data from the National Practitioner Data Bank.
• Families who work with attorneys recover 3.5 times more compensation on average than those who do not, based on studies from the Insurance Research Council.

Conclusion

The compensation awarded in a wrongful death case usually will come from various sources, including insurance policies, personal assets, corporate liability, and government programs. Navigating the complexities of these sources often requires legal expertise to ensure families receive the full compensation they deserve.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Wrongful Death Claims can be challenging. Fortunately, you don't need to do it alone. The experienced lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

Contact us now for a free legal review.