When people are injured and they file injury lawsuits, they understandably look primarily at whether they can win their case, and how much they will be compensated in any successful lawsuit. But often, victims don’t look to another, just as important question: Even if you win your case, will you actually get paid from the Defendant?
The answer to this question largely depends on who the Defendant in your case is.
Corporate Defendants
Larger corporate defendants are usually safer bets to pay a judgment, if and when one is entered against them.
Some large companies have and use large insurance companies, and others are self-insured—that is, they have their own insurance funds, and divisions that operate as if they were an insurance company. Many large stores, casinos, or retail, have planned ahead, and have ways to satisfy a judgment against them, no matter how large.
Smaller, more “mom and pop” companies can present a different problem. They may not have insurance—and in some cases, they may not even care if a judgment is entered against them.
Most smaller businesses that operate a physical location out of a strip mall or retail center, are more likely to have insurance, because the landlord often requires commercial tenants to carry liability insurance.
Suing a Person
When the Defendant is a person—for example, when you sue someone in a car accident—things get much different.
Nevada requires drivers to carry $25,000 (for one injured person)-$50,000 (for two or more) in liability insurance. So, assuming the driver is complying with Nevada’s liability insurance laws, if you have a claim that is under that amount, you are reasonably certain that the insurance will pay you.
But if your claim exceeds that amount you may have a problem. Many drivers do, voluntarily, have and pay for more than those coverage minimums, so again, you are OK if the Defendant in your case did carry more insurance. But many do not.
When they don’t you may be left in a tough situation. You may have to accept the policy limits (the $25,000-$50,000), and take nothing more. You could go after the other driver, individually, but if someone is driving with the minimum limits, it is unlikely that they have the means to satisfy, for example, a six-figure judgment.
When Insurance Doesn’t Pay
Then you have the potential problem of policy exclusions.
Many insurance companies won’t cover certain kinds of actions. For example, if someone is driving drunk, many insurance companies won’t insure the driver. That means that you, as the victim, would have to sue the driver individually, and rely on the driver to actually have the personal means to satisfy the judgment against him.
Intentional acts, like road rage, are another example of situations when insurance companies may not provide coverage to their insureds, leaving you, as the victim, to have to “chase” the liable defendant to collect any judgment entered in your favor.
