What Does it Mean When an Insurance Company Accepts Liability for a Personal Injury?
When making a personal injury claim against an insurance company, the company can 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. Once liability has been admitted, the case can proceed toward a settlement and the process of negotiating a compensation amount.
As such, an admission of liability can be a crucial stage in resolving a case. However, it is not always necessary. Even if the other party accepts liability, they may disagree on how much compensation you are owed, or argue that they are not entirely legally responsible for the accident, and that liability should be shared. This means that there are still many routes a claim can take at this stage.
In many cases, the insurance provider will admit fault and put forward an offer. It is vital that you seek legal advice in these cases, as an early offer of an out-of-court settlement by an insurance company rarely represents fair compensation for your injuries and associated financial losses. Compensation should cover your future needs, accident-related expenses and the pain and suffering you experienced, so you should not settle until your solicitor has had an opportunity to negotiate.
Why Do Insurers Make an Early Admission of Liability?
While it does not always mean that the process is over, an insurance company making an early admission of liability or fault is an important step in the process. The insurer will have some time to investigate the circumstances and there are several criteria it will use to determine whether it is in their best interests to accept liability. The key factor is the strength of the evidence your solicitor collects and submits, which can encourage a quick admission of responsibility in some cases.
The insurer will first consider whether the defendant had a legal duty of care, and whether that duty was breached. Evidence might include:
- Accident reports
- CCTV or dashcam footage
- Photographs
- Witness statements
- Maintenance and inspection records
- Training documents and risk assessments
- Police reports
- Workplace records
- Expert evidence, such as an independent medical report
When we prepare your letter of claim, we will gather evidence and ensure it provides enough information for the defendant and insurer to assess liability, including a summary of what happened, the alleged breach and the injuries you experienced as a result.
Under the personal injury pre-action protocol, an admission of liability ordinarily covers the accident, the defendant’s breach of duty, the fact that the claimant suffered loss and the absence of a limitation defence. In other cases, the insurer can:
- accept liability but dispute the amount of compensation
- admit liability save for causation
- accept primary liability subject to contributory negligence
- accept responsibility for the accident but dispute medical causation
- deny liability completely
- reserve its position while further evidence is obtained
When the insurer agrees that the defendant is responsible for your accident, bear in mind that they have their own motives for taking that step. 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.
What Options Do Insurers Have in a Personal Injury Claim?
Insurance providers have several options following an investigation into the circumstances of the accident. Most commonly, they will choose to accept liability for the accident, but this is not a guarantee even with strong evidence. Even when the other party accepts liability, you still need legal advice to protect you from the pressure to settle quickly, and ensure you receive fair compensation.
The insurance provider's options include:
Accepting liability
When an insurance company accepts 100% liability, it means they fully acknowledge responsibility for the accident and the injuries caused, without placing any blame on you. While this is an important stage of the claims process, it does not mean that you will receive the full extent of the compensation you are owed without court proceedings.
Insurers often 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, including medical evidence and receipts for financial losses sustained, is essential to securing a fair settlement.
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 that a duty of care was owed, and a breach of this duty occurred, but demand strong proof regarding the cause of your sustained injuries and consequential losses. This means you have a duty to show that your injuries were sustained as a result of the accident and that all of your claimed losses stemmed from the accident only.
If liability is admitted in such cases, 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 were injured in a car accident caused by someone else, but were speeding at the time, you may share in responsibility for the damage.
If a defendant’s insurer requests that you admit some negligence in a case, the amount must be agreed by both sides. If you accept 25%, you will receive 75% of the total agreed compensation amount rather than the full amount. As such, your solicitor can advise you on your options and negotiate the negligence amount in some cases.
Denying liability
Sometimes the other party may deny liability. This does not mean that you cannot pursue your claim, but that we must take the matter to court. Even in these cases, the other party will often admit liability before or after the court process begins, and we will continue to negotiate to achieve this outcome until the final court date.
Claiming fundamental dishonesty
In some cases, the defendant’s insurer may raise a defence of fundamental dishonesty. This can arise during disclosure or investigation if 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. As such, it is important that you do not provide any inaccurate information to your solicitor, as they could jeopardise your claim.
When Would an Insurance Company Not Accept Liability?
An insurance company may refuse to accept liability where it believes the evidence does not establish that its policyholder was legally responsible for the claimant’s injury. This may happen where:
- No duty of care was owed: the policyholder had no legal responsibility towards the claimant in the circumstances.
- There was no breach of duty: the policyholder took reasonable precautions and did not act negligently.
- The policyholder did not cause the accident: the insurer believes the claimant, another party or an unavoidable event was responsible.
- The accident did not cause the injury: medical evidence suggests that the symptoms were pre-existing, arose later or were caused by something else.
- The wrong person or organisation has been pursued: responsibility rests with another driver, employer, contractor, occupier or product supplier.
- There is insufficient or inconsistent evidence: the claimant’s account is not supported by the evidence that has been provided, whether because the evidence is lacking or due to significant differences between accident reports, medical records and witness accounts.
- The employer puts forward a different version of events: when your employer provides an alternative or contradictory account of how the injury occurred.
A refusal is not final, and we can challenge the insurer's decision by submitting further evidence, negotiating with the insurer or, where necessary, asking the court to determine liability.
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. Compensation can cover the full extent of your financial losses, including private medical treatment, day-to-day care, transportation to and from medical appointments, and lost earnings during your recovery or in the future. For this reason, a claim is key to moving forward and adjusting to new circumstances after your accident.
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.
Talk to Us
To speak to an expert about an injury that was caused by somebody else’s negligence, contact JMW today and begin your personal injury claim. Our solicitors are waiting to hear from you and are happy to answer any questions you may have.
To get in touch, simply call us on 0345 872 6666 or complete the online enquiry form to let us know that you would like to hear from us.
