What role does determining liability play in the investigation?

Determining liability is crucial in the investigation process as it helps clarify who is responsible for the damages or losses in a claim. This assessment is essential for establishing whether the claim is valid and for outlining the proper procedures for processing it. Accurately determining liability ensures that the right party is held accountable and that the claim is handled fairly and appropriately in accordance with the insurance policy terms.

Understanding liability also plays a significant role in deciding the amount of compensation, if any, that should be awarded to the claimant. If the investigation finds that liability lies with the insured party, the insurance company may have to pay out a claim within the limits of the policy. On the other hand, if liability rests with the claimant or another party, this could lead to a denial of the claim or a need for further investigation into other potential causes or parties involved.