What is the difference between an insurance claim and a lawsuit?

The differences between an insurance claim and a lawsuit in Washington State can be stark. An insurance claim is the process by which an insured person seeks compensation for losses or damages covered under their insurance policy. When an insured person files a claim with their insurance company, they are seeking an amount of money they think is fair, based on what they have lost or the amount of damage they have suffered. The claims process involves the insured submitting evidence and paperwork, such as bills and repair estimates, to the insurance company. The insurer will then decide if the claim is valid and how much money the insured should receive. A lawsuit, on the other hand, is a legal process by which one person or company seeks damages from another. This means that a court, rather than an insurance company, is tasked with assessing how much money the injured party should receive for their losses. In a lawsuit, the plaintiff (the injured party) needs to show that the defendant (the party who caused the injury) was negligent or somehow at fault in order for the plaintiff to be awarded damages. In summary, the main difference between an insurance claim and a lawsuit in Washington State is who is responsible for assessing the damages. With an insurance claim, the insurance company decides how much to pay the insured. With a lawsuit, a court decides how much the injured party should be awarded in damages.

Related FAQs

How do I challenge an insurance company’s decision?
What is the process for making an insurance claim?
What is the difference between immediate annuities and deferred annuities?
How do insurance rate determinations take place?
What is an insurance binder?
What is the difference between life insurance and health insurance?
What are the legal requirements for insurance contracts?
What is an insurance policy?
How do insurance regulations vary by state?
What types of damages are covered by insurance?

What is the difference between an insurance claim and a lawsuit?

Related FAQs

Related Blog Posts