What Does it Mean When an Insurance Company Accepts Liability for a Personal Injury?

When making a personal injury claim against an insurance company, they have the option to accept or deny liability. If the defendant’s insurer accepts liability on their client's behalf, it means that they are assuming legal responsibility for your accident and injuries. An admission of liability can be a crucial stage in resolving a case but is not always necessary.

Once liability has been admitted, the case can proceed toward achieving a settlement. This is the process of deciding on a compensation amount.

However, an admission of liability alone does not mean you will receive full compensation. In some cases, the defendant’s insurer may raise a defence of fundamental dishonesty. It is important that you do not provide any inaccuracies to your solicitor, as this will jeopardise your claim. Fundamental dishonesty can arise during disclosure or investigations, most commonly when the defendant suspects you are deliberately exaggerating the injury you suffered during the admitted accident, or that the claim for special damages includes fabricated expenditures. In these circumstances, the defendant would seek to dismiss the whole or part of your claim, and you may not be entitled to any monetary compensation for your complete claim or for one particular element claimed. 

If an offer has been put forward by an insurance company but you do not have a solicitor working alongside you, it is vital that you seek legal advice. Insurance companies are often keen to arrange an out-of-court settlement, but these offers rarely cover your needs and expenses, so you should not settle for the first sign of accepting liability. For information, take a look at the following guide.

Why Do Insurers Accept Liability?

While an insurance company accepting liability, or fault, may be a sign of an imminent win, you should not celebrate too soon as they will have their reasons for doing so. 

The main reason that insurance companies accept liability is to cut their losses and try to offer you a lower amount, with the benefit of resolving the claim sooner than if it was taken to court. If an insurer is offering this deal, it could mean they do not feel confident that their client would win if you brought a claim against them. 

Other reasons include saving time or funds due to other claims that they are having to make payments for. It is always important to discuss this with your solicitor so you can understand what it may mean for you, and what the best course of action is.

Admitting Liability Save for Causation

In some cases, a defendant’s insurer will agree that liability is accepted, save for causation. This means they admit negligence occurred - so a duty of care was owed, and a breach of this duty occurred - but place you to strict proof regarding the cause of your sustained injuries and consequential losses. This means you have a duty to prove, usually medically, that your injuries were sustained as a result of the accident and that all of your claimed losses stemmed from the accident only. If you exaggerate the degree to which you have been injured or the degree to which you required additional support, this can impact your solicitor’s ability to present your claim.

If liability is admitted, however, your lawyer will arrange for the necessary evidence to be collated and submitted to the defendant’s insurer in an attempt to settle the personal injury claim in the first instance.

Accepting Liability With Contributory Negligence

Liability can be accepted with other stipulations, the most common of which is contributory negligence. This is where the defendant agrees that they were the cause of the accident, but states that your own negligent acts contributed to the loss or damage. For example, if you have had a slipping accident while wearing shoes with no grip, the defendant’s insurer may suggest the footwear you chose to wear was not fit for purpose and therefore you are partially to blame for the accident. You will share in responsibility for the damage in this instance.

If a defendant’s insurer requests that you admit some negligence in a case, your lawyer will be able to assess the request and advise you if it is appropriate. If it is appropriate, the level of negligence must be agreed by both sides. For example, if you accept 25%, then you will receive 75% of the total agreed compensation amount.

Your lawyer may not agree, or may feel that the proposed level of negligence should be reduced. They will advise you if this is the case, and negotiations will take place.

What Does it Mean When an Insurance Company Accepts 100% Liability?

When an insurance company accepts 100% liability, it means they are fully acknowledging responsibility for the accident and the injuries caused, without placing any blame on you. This is an important step in the personal injury claims process, as it simplifies the path towards securing compensation. However, while the admission of 100% liability can expedite the case, it does not guarantee a specific compensation amount.

Your legal team will work to ensure that the compensation you receive accurately reflects the full extent of your injuries and any related expenses. Even in cases where liability is fully accepted, it is vital to present comprehensive evidence to support your claim, particularly regarding the severity of your injuries and any losses sustained. This includes medical records, reports, and receipts for any financial losses.

It is also important to understand that while accepting 100% liability indicates the insurer is not disputing responsibility, they may still seek to reduce the amount of compensation by questioning the extent of your injuries or the value of your special damages. This is why working closely with a solicitor to gather and present the necessary documentation is essential to securing a fair settlement.

By accepting 100% liability, the insurer agrees that their client is fully responsible, and you should not face any reductions in compensation due to contributory negligence.

When and How Should I Settle?

Your solicitors will be able to assess the support and care that you need following an injury, and advise on the minimum amount of personal injury compensation you need to cover it. Your own insurance company may be able to offer you finances to help with this, but it is not uncommon for them to try to avoid doing so. Therefore, you should seek our help and refrain from settling until we are confident that your needs will be met.

Even if your own insurance company can help by financially supporting you, that does not mean you should ignore the fact that someone is liable for your suffering, and so you should seek recompense.

Not Satisfied With Your Solicitor?

If you are not satisfied with the law firm you have appointed and how it is handling your case, JMW offers a “Check My Claim” service. This gives you a second opinion on the service you are receiving from your current solicitor.

We can check your claim if:

• Your case has been mishandled or progress has taken too long
• You have been told your claim is not worth pursuing
• You are not happy with the amount of compensation you have been told you will receive
• Your solicitor has settled your case for a lower amount of compensation that you feel you deserve

For more information on how you can switch solicitors, take a look at our dedicated page.