Whether or not you should sign an insurance company release is a complex question. By signing an insurance release, you are formalizing a settlement offer resulting in financial compensation for you. That said, a release also waives all future claims for that injury. Your decision to sign a release depends on the contents of the document.
Before you sign a release and agree to a settlement, it is important that you understand how your injury case will be impacted. If the settlement agreement is reasonable, signing the release could bring your case to a favorable conclusion. Signing a release without a legal professional’s guidance could put you at risk of missing out on the compensation you deserve.
A release is a legally binding document. This agreement is used as part of settlement negotiations related to personal injury cases, among other things. Often, it is executed at the end of the settlement agreement after each party fulfills their end of the bargain.
Typically, a release is drafted by the insurance company. In some cases, the attorneys for both sides might agree to certain terms and draft the release collaboratively. This document earns its name because executing it releases the other party from any future liability for your injuries. Once signed, you can no longer pursue a personal injury case against the at-fault party.
Every insurance company has their own release form, and each of these forms can differ to a degree. However, these agreements largely cover the same important factors. They spell out the specific terms of the settlement agreement, and they include a provision that waives any future claim stemming from this incident against the other party.
Many releases also include language that makes clear the defendant does not admit to liability or wrongdoing. Instead, these agreements usually provide that the defendant agrees to settle to avoid costly and drawn-out litigation.
Like with any legally binding agreement, there are serious consequences that can stem from signing a release from an insurance company. Doing so without the guidance of one of our lawyers could be risky in several ways.
The primary concern with signing a release without fully understanding its contents is that you could settle your claim for less than it is worth. Because a release ends your opportunity to pursue a civil lawsuit for your injuries, you will not have a second opportunity to seek compensation from the insurance company again.
Releases are complex legal documents, and other factors could be problematic for you outside of the amount of your compensation. In some cases, you could be giving up rights unintentionally or even waiving rights you never knew you had.
A release could bar you from not only pursuing further claims against the defendant but also for anyone else involved in your case. That is why it is important to understand the scope of a release before signing it.
A release could also place additional obligations on you. Some releases include language requiring you to indemnify the insurance company if another party claims they were entitled to that compensation instead of you.
Indemnification clauses could put you at risk of costly litigation or unexpected liability. Working with one of our lawyers can make the risks of signing a release clearer.
You are under no obligation to deal directly with the insurance company, much less sign a release on your own. Your lawyer could deal with the insurance companies for you, which includes negotiating a settlement and release.
Your attorney could work with the insurance company to guarantee the final release in your case protects you from any unexpected liability while ensuring that you secure fair compensation for your injuries.
Negotiating the release goes hand in hand with negotiating the final settlement. The release could spell out the terms of the settlement as well as any future obligations either party might have. Experience with negotiating these agreements could be useful to you and your personal injury case.
It is important that you consider every aspect of your insurance release before you sign it. Once you execute the release, your opportunity to pursue future legal action against the responsible party is gone. The attorneys of The Kryder Law Group, LLC secure favorable settlements. Our team could negotiate a reasonable release as part of the settlement process.
If you are ready to protect your legal rights while recovering fair compensation for your injuries, our attorneys are here to help. Call (312) 598-0982 for a free consultation as soon as possible. You will speak with a compassionate team member who wants to hear about your situation and determine the best course of action for you.