Factors that Influence the Size of a Wrongful Death Settlement

Wrongful death claims arise when someone’s negligent actions or wrongful conduct lead to the death of another person. Across most states in the U.S., the survivors of the deceased person may seek to file a lawsuit against the person who caused the death to seek compensation for the loss. However, the amount of a wrongful death settlement can vary significantly from case to case, with some earning potentially multi-million dollars for wrongful death and others earning smaller sums. By understanding the factors that influence settlement amounts, you can more effectively pursue justice for your loved one.

The Role of Liability and Negligence

The first factor that will inevitably influence the size of a wrongful death settlement is liability. In many states, the plaintiff must prove that the death of a person was caused by the defendant’s negligent or intentional actions. This refers to a failure to act with a level of care that would reasonably be expected of someone who was in the same situation. 

As an example, a driver who chooses to be under the influence of alcohol while operating their vehicle causing a fatal car accident may be held liable for the victim's death. Along the same line of thinking, a medical professional who fails to provide adequate care in such a way that the patient dies can be found negligent, particularly if their error was egregious. Cases that involve gross negligence or intentional harm, such as murder, typically result in larger settlements because of the severity of the defendant’s actions.

The Victim’s Age, Health, and Life Expectancy

Another important consideration in a wrongful death settlement will be the age of the victim at the time of their death, their health status before death, and their life expectancy. As morbid as it sounds, young victims with fewer health problems typically have higher settlement amounts because of the loss of their future potential as opposed to an older individual. Courts take into account what the victim could have achieved in their lifetime, such as career earnings, family contributions, and personal milestones. 

In short, the death of a young and healthy person who was just starting a promising career will likely result in a higher settlement than the death of an elderly person or something with a pre-existing condition given the combination of their potential future income and years of lost life. 

Economic Losses: Lost Wages and Financial Support 

One of the most significant factors in determining a wrongful death settlement is the economic loss associated with the deceased, particularly the loss of wages and financial support that that person would have provided. A wrongful death claim can include compensation for both the actual and future financial contributions the person would have made, including wages, benefits, and future income.

If the victim was the primary wage-earner in the family, for example, the surviving spouse and children may experience severe financial hardship following their loss. This economic loss is a central element in calculating a settlement amount. Therefore, the deceased person’s career, earning potential, and level of financial support from before death will be evaluated and utilized. 

Non-Economic Losses: Pain, Suffering, and Emotional Impact

In addition to the economic losses described above, wrongful death settlements also consider non-economic damages which compensate for the emotional and psychological toll that the death of a loved one takes on the survivors. Unlike economic losses, non-economic losses are more difficult to quantify as they involve pain, suffering, the loss of companionship, and more. 

The impact of the victim’s death on surviving family members is a key factor in these damages, as spouses, children, and parents can all claim compensation for the emotional grief and mental anguish that is caused by the sudden death. The court will also consider how the death affects the survivors’ daily lives and relationships when determining non-economic damages.

Insurance Coverage and Policy Limits

The available insurance coverage that the deceased person has in the event of their death will also play a significant role in a wrongful death settlement. In many cases, the defendant’s insurance policy, whether it’s for car accidents, malpractice, or workplace injuries, may be used to cover the settlement costs. However, insurance companies often limit the amount they will pay which can impact the total settlement value. 

In wrongful death claims, the insurance policy limits can either help or hinder the victim’s family, such as if the defendant had minimal insurance coverage. On the other hand, if the defendant had a large policy or other forms of coverage in which the victim’s family is already receiving significant compensation, then the settlement amount may be lower. 

The Strength of Evidence and Legal Representation 

One of the final factors that will come into play when the settlement amount in a wrongful death case is being determined is the strength of the evidence shown. A wrongful death case can be supported by strong evidence such as witness testimony, expert reports, physical evidence, and more which can lead to a higher settlement. For example, in cases where there is evidence of irrefutable negligence, such as dashcam footage of a drunken accident, then the defendant may be more inclined to settle for a large sum. This is why having experienced legal representation is so important, as skilled wrongful death attorneys can help you to navigate the complex legal proceedings, advocate for fair compensation, and negotiate effectively with insurance companies to secure a favorable settlement. 

Consider all factors in pursuing a wrongful death claim

There will be several key factors that determine the size of your wrongful death settlement depending upon the state you are living in, all centered around the idea of degree of liability and negligence. The victim’s age and health, economic and non-economic losses, and insurance coverage will all also play a role in forming the basis of compensation. Families pursuing a wrongful death claim should ensure that they thoroughly understand all the factors that will determine the settlement amount so that they can speak with an accredited attorney who can assist them with working through the case.