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⚖️ '''Comparative negligence''' is a legal doctrine used in [[Definition:Liability insurance | liability insurance]] claims to allocate fault among multiple parties involved in a loss, reducing a claimant's recovery in proportion to their own degree of responsibility. Unlike [[Definition:Contributory negligence | contributory negligence]], which can bar recovery entirely if the claimant shares any blame, comparative negligence allows partial compensation based on each party's percentage of fault. The doctrine plays a central role in how [[Definition:Claims adjuster | claims adjusters]] and [[Definition:Defense counsel | defense counsel]] evaluate bodily injury and property damage claims under [[Definition:Commercial general liability (CGL) | commercial general liability]], [[Definition:Auto insurance | auto insurance]], and [[Definition:Professional liability insurance | professional liability]] policies.

🔍 When a covered loss triggers a [[Definition:Liability claim | liability claim]], the insurer's claims team must investigate and assign fault percentages to each party. In a "pure" comparative negligence jurisdiction, a claimant who is 70% at fault can still recover 30% of damages from the other party's insurer. In "modified" jurisdictions, recovery is barred once the claimant's fault exceeds a statutory threshold — typically 50% or 51%. [[Definition:Underwriter | Underwriters]] factor these jurisdictional rules into [[Definition:Rate filing | rate filings]] and [[Definition:Loss reserve | loss reserves]] because the same accident can produce dramatically different payout obligations depending on the state. During [[Definition:Litigation management | litigation management]], insurers and their attorneys negotiate fault allocations that directly affect [[Definition:Indemnity payment | indemnity payments]] and [[Definition:Loss adjustment expense (LAE) | loss adjustment expenses]].

💡 The practical impact on [[Definition:Insurance carrier | carriers]] is significant: states that follow pure comparative negligence tend to generate higher average claim costs because even heavily at-fault claimants retain the right to collect. This dynamic influences [[Definition:Territory rating | territory rating]], [[Definition:Reinsurance | reinsurance]] purchasing decisions, and the design of [[Definition:Policy exclusion | policy exclusions]]. For [[Definition:Insurtech | insurtech]] companies building automated [[Definition:Claims processing | claims processing]] tools, encoding comparative negligence rules by jurisdiction is essential to producing accurate [[Definition:Settlement | settlement]] recommendations and avoiding regulatory missteps.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Contributory negligence]]
* [[Definition:Liability insurance]]
* [[Definition:Subrogation]]
* [[Definition:Tort reform]]
* [[Definition:Claims adjuster]]
* [[Definition:Loss adjustment expense (LAE)]]
{{Div col end}}

Definition:Comparative negligence - Revision history

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