Most people assume the insurance company decides who caused the accident. It doesn’t. An insurance company decides whether it will accept or deny a claim based on its investigation, but that is different from making a binding legal determination of fault.
What a liability denial letter really means
A liability denial letter reflects the insurance company’s position based on the facts, evidence, and information available during its investigation.
In other words, it explains why the carrier believes it is not responsible for paying the claim at that point in time. Sometimes that position remains unchanged. Other times, additional witness statements, photographs, video, expert analysis, or other evidence causes the carrier to reevaluate its decision.
Does the insurance company decide liability?
Not necessarily.
The insurance company decides whether it will voluntarily accept or deny a claim based on its investigation. That decision affects whether it will make payment, but it does not make a final legal determination of who is at fault.
If the parties cannot resolve the dispute, the ultimate question of legal liability is decided through the legal process, not simply by an adjuster’s denial letter.
What should you do if liability is denied?
A liability denial is not always the end of a claim.
Take the time to understand why the claim was denied, preserve any available evidence, and determine whether additional information may address the issues identified by the carrier. As an investigation develops, an insurer’s position on liability may change.
From My Experience
Before opening Herrera PLLC, I spent more than a decade handling complex insurance claims as an Executive General Adjuster. I later evaluated liability and insurance coverage matters for a premier Houston law firm before starting my own practice.
One thing I learned from both perspectives is that an initial liability position is exactly that. As additional evidence is gathered and the investigation develops, those positions sometimes change.
Frequently Asked Questions
Can I still recover if the insurance company denied liability?
Possibly. A liability denial reflects the insurer’s position based on its investigation, not a final court ruling. Depending on the circumstances, the dispute may still be addressed through additional investigation, negotiation, or the legal process.
Talk to Jonathan Herrera About Your Situation
If you’ve received a liability denial and are unsure what it means for your claim, Herrera PLLC is available to discuss your situation.
Related Reading
- Inside a Truck Accident Claim
- How Insurance Companies Investigate Truck Accident Claims
- How Adjusters Evaluate Liability and Damages
- Evidence Preservation After a Truck Accident