What Happens When You Sign a Release After Settling a Claim?
Signing a release form after reaching a settlement with the liable insurance company is generally the final step of the injury claim process. Your signature on that document bars you from pursuing additional compensation from the insurance company for the same injury, even if you incur additional damages. That is why speaking to an attorney before signing the release form is important.
Our personal injury attorneys in Sacramento are prepared to determine the full value of your claim. We know how to establish the value of your past, present and future damages to pursue maximum compensation. You need to feel confident that when you sign the release form you are not leaving any compensation you need on the table, and hiring an attorney helps provide that peace of mind.
Call the Arnold Law Firm today to schedule a free legal consultation.
What is a Release Form?
A release of all claims form is a document insurance companies require injury victims to sign before paying out a settlement. They are also called “liability release forms” because signing one releases the insurance company from liability for all damages once the settlement is paid out.
Signing the form means the injury victim does not hold the insurance company liable, and the insurance company does not take any responsibility, for the damages suffered in an accident. The injury victim is being compensated for releasing the insurance company of liability.
What is Included in a Release Form?
A release form should include the following basic information about the case:
- Identification of parties – the people involved in the dispute, such as the injury victim and the person who is responsible for the accident
- Details of the accident – when, where and how the accident occurred, and what the conditions were when it occurred
- Claims made by the injured party – the damages the injury victim suffered, such as medical bills, lost wages, pain and suffering and more
- Settlement payout amount – how much compensation the liable party is paying the injury victim in exchange for release of liability
- Laws governing enforceability of the agreement – state and federal laws/statutes that determine how the settlement and release of liability shall be enforced
A release form is also likely to include the following information, although release forms may vary depending on the insurance company:
- An agreement to release the insurance company from any requirements to pay further compensation associated with this claim
- A statement agreeing to give up your right to file a lawsuit in the future for damages associated with this claim
- An agreement that the insurance company is not admitting fault despite paying out a settlement
Some release forms may also include a non-disclosure agreement, which means that the party accepting the settlement agrees to not discuss or share details of a settlement.
Am I Obligated to Sign the Release Form?
Generally, yes, if you want to receive the compensation from the settlement. Some insurance companies withhold the settlement funds from the injury victim until the release form is signed.
This could be good or bad, depending on the facts of your case, as you may be given up to 30 days to sign the paperwork.
Why You Should Speak to an Attorney Before Signing
Before signing anything that the insurance company sends your way after an accident, call an attorney who may be able to help you through the legal process. Insurance companies claim they have your best interests in mind, but they do not. They are primarily concerned with their bottom line, not with how you will be paying your medical bills.
Because signing a release form means releasing the insurance company from liability, you need to have an attorney on your side who can determine the full value of your claim. You do not want to leave money on the table because it is unlikely you will be able to get it back.
Call the Arnold Law Firm Today
Our attorneys are prepared to negotiate a settlement that covers the costs of past, present and future damages after an accident. We know how important it is to get full compensation to help you move forward.
Give us a call today to schedule a free consultation.
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