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Lawsuit vs. Claim | Unsell Injury Lawyers

What is the difference between a “Lawsuit” and a “Claim”

 All lawsuits start with a claim, but not all claims turn into lawsuits. Let me explain.

 It is important for you to understand not every injury requires a lawsuit in order to recover for that injury. The moment that you are injured by another person you have a ”Claim.”  A claim simply means that someone owes you money for an injury- whether an injury to property or bodily injuries.

 While the value of that claim is unknown, you and most likely the other party is aware that such claim exists. In order to receive full and fair compensation on a claim, you must know what safety rule the other side broke and what is the extent of the injuries you received.

After you've determined the extent of the injuries you received, you are able to let the other side know what compensation you deserve. Once you have established the damages for your claim, you can go to the other side and demand payment for those injuries. Oftentimes the other side is represented by an insurance company. So, you make a demand for payment upon the insurance company. If you and the insurance company can come to an agreement on the value of the claim, the insurance company will pay you for that injury.  In that case, your claim never becomes a lawsuit.

Lawsuits are filed when the insurance company denies a claim or refuses to pay fair compensation for the claim. So all lawsuits start with a claim, but not all claims turn into lawsuits. There are a few exceptions. One of which if you are injured at work. Then you never have to file a lawsuit to recover.

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