Trial Attorney Blog
The emotional toll is enormous when a loved one’s life is lost due to the negligence of another.
Families may encounter unforeseen financial and legal challenges on top of their grief.
One of the most painful situations is when the insurance company rejects the wrongful death claim.
Our experienced wrongful death lawyers at Finch McCranie LLP are aware of how cruel and painful these rejections can be, particularly when the evidence appears to be compelling.
Insurance companies often deny claims not because they lack merit, but because it serves their bottom line.
Their goal is to limit payouts, and unfortunately, even valid claims are frequently met with resistance, delay, or outright rejection.
Common Reasons Insurance Companies Deny Wrongful Death Claims
There are several key reasons insurance companies give when rejecting a wrongful death claim. Understanding these can help families prepare—and push back.
Disputed Liability or Fault
One of the most common reasons for denial is disagreement over who was at fault.
Even in seemingly straightforward cases, insurance companies may argue that someone else was responsible—or that the deceased person contributed to their own death.
In Illinois, under 735 ILCS 5/2-1116, compensation can be reduced or denied entirely if the deceased is found to be more than 50% at fault.
This allows insurers to escape liability by emphasizing minor actions or decisions of the deceased lawyer.
Insurance policies are filled with technical language that insurers often use to avoid paying.
Some policies exclude specific circumstances such as:
- Death caused by substance use
- Acts considered intentional or criminal
- Workplace accidents involving third-party liability
- Coverage involving excluded drivers in vehicle accidents
Additionally, insurers may argue that the claim exceeds policy limits or isn’t covered under the type of policy held by the responsible party.
These issues are especially common in fatal car crashes and complex liability cases.
Procedural Errors and Delays in Filing
Insurance firms mainly depend on technical processes and timelines.Claims may be denied because:
- The claim wasn’t filed in time
- Required documentation was incomplete
- Forms weren’t submitted correctly
- Information was inconsistent or unclear
Families in mourning are often overwhelmed by paperwork, which creates an opportunity for insurers to deny claims based on small procedural flaws.
Unclear or Disputed Beneficiary Status
In Illinois, the Wrongful Death Act (740 ILCS 180/2) allows spouses, children, and parents of the deceased to bring a claim.
However, if a person’s relationship to the deceased isn’t clearly documented in the policy, insurers may contest their right to file.
Issues arise especially when the policy lacks updated beneficiary information or when a non-immediate relative files the claim.
Methods Employed by Insurance Companies to Postpone or Undervalue Claim
Insurance companies don’t always issue outright denials. Sometimes, they use more subtle tactics to lower the final payout or wear families down into accepting less.
Offering Low Settlements Early
Families are vulnerable after a sudden loss. Insurers often take advantage of that by making early settlement offers that seem generous—but are far lower than the full value of the claim.
These offers often come with tight deadlines to pressure grieving families into signing away their rights to further compensation.
Shifting Blame Through Comparative Fault
Insurers may go out of their way to assign a portion of the blame to the deceased.
This tactic is used to reduce their financial responsibility.
Even if the evidence overwhelmingly supports your case, insurers may highlight trivial details or unrelated past behavior to argue the deceased was partially responsible.
How a Wrongful Death Attorney Can Help
At Finch McCranie LLP, we focus on representing families in wrongful death cases.
Our wrongful death lawyer team understands the intricacies of Illinois wrongful death laws and how insurance companies operate.
We thoroughly investigate the circumstances of your case, gather evidence, manage all communication with the insurer, and make sure no technicality is used against you.
Our goal is to defend your rights and secure the maximum compensation for your family, allowing you to focus on recovery without financial concerns.
Conclusion
The sole objective of insurance firms is to safeguard their earnings.
That’s why they often deny, delay, or underpay wrongful death claims—even when the loss is clearly covered.
If your family has lost someone due to negligence, don’t let an insurance company decide what your grief is worth.
Allow a reputable wrongful death lawyer from Finch McCranie LLP to support you.
We will fight for justice, challenge unfair denials, and help you get all of the money you are legally entitled to.