You have been through a lot. You have been injured in an accident. You have gone to seemingly endless doctor’s appointments. Your life has changed. You have watched medical bills and other expenses pile up. You have waited patiently to get a good settlement offer. Finally, the process is wrapping up. You have reached an agreement with the insurance company. Now, you are being asked to sign a release in order to get this money. But, what is a release?
What Is a Release?
A release of all claims, also sometimes referred to as a “liability waiver form,” is often included in a settlement agreement by an insurance company. It is a legally binding document that provides for the agreement to resolve the differences between the two parties, dismissing any outstanding claim, and releasing the insurance company and the insured from further liability. In other words, it releases the responsible party, the person at-fault for causing the accident and the insurance company, from any liability and future obligation to pay you for damages you sustained as a result of the accident.
The release will detail things such as the accident that caused your injuries, what you are claiming in terms of property damage and bodily injury, the identities of the parties involved, the payment that is being made to settle the claim, and any relevant governing laws. Some of the key provisions of the release include:
- An agreement that you release the liable party from future obligations to pay for any damages resulting from the accident. This release of the obligation to pay will still hold should you discover other damages or injuries later on. You are waiving your right to be compensated for these later discovered damages.
- You will also be agreeing to waive your right to bring suit against the insurance company as well as the insured driver liable for causing the accident.
- There is also likely to be a provision in the agreement providing that none of the parties are admitting fault for the accident as part of the settlement agreement.
As you can see, you are agreeing to some significant things in signing the release. Take care to review the release and discuss its implications with your attorney. Before the insurance company pays out a settlement, you will most likely be required to sign the release. In fact, the insurance company has the legal right to withhold payment of a settlement until it receives a signed release.
Jonesboro Personal Injury Attorney
Always approach a settlement agreement and release with trepidation. This type of agreement has important and potentially substantial legal ramifications. Some insurance companies will try to rush an injury victim into quickly settling and signing a release before they know what they are getting into. Before doing anything like this, talk to the trusted legal counsel at the Law Office of Bryce Cook. Contact the Law Offices of Bryce Cook today.