What Is a Release of All Claims Form in a Settlement?

When you have been injured in an accident and are offered a settlement by the at-fault party’s insurance company, before you cash the settlement check, the company will probably require you to see a “release of all claims form.” Unless you have consulted with a personal injury attorney, it is in your best interest not to sign that form.

After your accident and before you sign a release of claims form, connect with a personal injury lawyer from John Foy & Associates to ensure you receive a fair settlement that covers your needs. 

The Release of All Claims Form Explained

The release of all claims form, also called a “liability waiver,” is an agreement establishing a resolution of each party’s differences and dismissing their claims. It clears the at-fault party and their insurance company from liability. Once you, the claimant, sign it, you can not pursue any additional compensation. 

If you sign the form and later realize you did not recognize the extent of your damages or financial strain the accident has imposed on your household, you cannot seek further compensation, even if you deserve it.

Specific “Releases” Addressed in the Form

The specific content of the release of all claims document varies depending on the nature of the accident, the insurance company, and the jurisdiction. However, most forms will include some variation of:

• Release for Further Payment: The at-fault party is released from paying out any further compensation even if you later discover additional accident-related medical or other expenses. 
• Forfeit the Right to Sue: You give up your right to sue the at-fault driver and their insurance company.
• Non-Admission of Fault: While this element of the agreement does not affect the settlement amount, it establishes that each party agrees to the terms without blaming the other.
• Non-Disclosure: If the document contains a non-disclosure agreement, by signing, you give up your right to talk about the details of the settlement.

Additional information included in a release of all claims form includes:

• Accident Details: at the very least, the date and location of the accident should be included, though usually a summary is required
• Identifying Information: names and addresses of the plaintiff/s (the claimant) and the defendant/s (the at-fault party)
• Claim Information: what damages the plaintiff is pursuing, for example, property damage, injury, emotional distress
• Payment Details: how much the insurance company is paying the plaintiff in exchange for the release of liability
• Relevant Law: the laws governing the agreement

Keep in mind that some insurance companies make separate agreements for property damage and bodily injuries. Property damage settlements are usually easier to resolve than those for bodily injury. Before you sign a release of all claims document, be sure you know exactly which claims are included in the document.

What to Know Before Signing a Release of All Claims Form

The aftermath of an accident is stressful. You are likely in pain from your injuries, out of work, worrying about finances, and visiting one doctor after another. In your vulnerable state, you may just want the ordeal to be “over” and agree to sign what the insurance company has decided you deserve.

It is so important to remember that the at-fault insurance company is not on your side. They are on their own side and will offer you as little as possible to protect their bottom line. Adjusters are convincing and may offer impressive-sounding explanations for their offer, even telling you it is a generous amount–you could not expect to get more.

The insurance company knows you are entitled to more compensation. They know if you have a personal injury attorney from John Foy & Associates handling your claim, your attorney will conduct a thorough assessment of your needs and the circumstances of the accident and fight for an amount that actually meets those needs and brings justice. 

Legal Guidance Is Critical to Securing a Fair Settlement

Legal documents, such as the release of all claims forms, are written in “legalese.” They include terminology and phrasing unfamiliar to most claimants, making it easy to sign something without understanding its true implications. By partnering with an experienced lawyer before signing a release of all claims form, you will not sign away anything accidentally.

If you receive a settlement offer and then secure an attorney, your lawyer will first carry out an extensive case review, gathering details of the accident and the damages you sustained. It is likely your attorney will advise you against signing that first offer and, using the evidence and information collected through the accident investigation and consultations with relevant experts, negotiate a higher, much more realistic amount.

Once an agreement is reached, still only sign the release of all claims form once it has been examined and approved by your personal injury lawyer. Your lawyer will review the document carefully, ensuring it accounts for your total damages and does not contain any discrepancies. 

After You Sign a Release of All Claims Form

After your attorney approves the terms of the release of all claims form and gives you the go-ahead to sign, the insurance company will issue a settlement check. Your attorney will manage the disbursement of these funds, taking the agreed-upon amount to cover their legal fees and dispensing the majority to you.

This is the only time you will pay your attorney. John Foy & Associates has an impressive record of securing significant settlements and works on a contingency basis. This means your attorney does not get paid until you receive compensation. 

We Will Not Let You Sign Away a Fair Settlement

A fair settlement will support your recovery, bring stability to your financial future, and offer a measure of justice for the suffering you have endured. Do not underestimate what you deserve and need or risk accepting a lowball, inadequate offer from the at-fault party’s insurance company. Reach out to a personal injury lawyer from John Foy & Associates who will value your case with care and only have you sign a release of all claims form when the agreement thoroughly accounts for your needs.