What is the difference between a claim and a lawsuit?

A claim and a lawsuit are two different types of legal proceedings used to resolve disputes. A claim is a legal demand made by an insured person seeking reimbursement for damages or losses from an insurance company. The insured person can file a claim if they have suffered losses due to an insured event. This gives the insurance company an opportunity to investigate the loss and potentially provide compensation to the insured person. A lawsuit is a legal action which a person initiates against another person or entity in order to settle a dispute. This could be filed in civil court or in an arbitration. A lawsuit requires strong evidence that the other person or entity has done something wrong or breached a legally binding contract. In Florida, lawsuits must be filed in the Circuit Court within the jurisdiction of the dispute. The main difference between a claim and a lawsuit is that a claim is the first step in seeking compensation from an insurance company while a lawsuit is the next step in dispute resolution when other methods have failed. Claims require the insured person to provide evidence that they have suffered a loss due to an insured event. A lawsuit is a formal process which must be followed in order to determine the legal rights and liabilities of the parties involved.

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What is the difference between a claim and a lawsuit?

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