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Wisconsin’s Direct Action Statute

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Wisconsin has a “direct action” statute, which means unlike many other states in our country, a person injured in an accident is allowed to directly sue the insurance company along with the driver or owner of the vehicle that caused the crash.

sec. 632.24 Direct action against insurer. “Any bond or policy of insurance covering liability to others for negligence makes the insurer liable, up to the amounts stated in the bond or policy, to the persons entitled to recover against the insured for the death of any person or for injury to persons or property, irrespective of whether the liability is presently established or is contingent and to become fixed or certain by final judgment against the insured.”

This law is unique. Wisconsin’s “Direct Action Statute,” basically states that any insurer who covers negligent behavior on the part of the insured is liable for damages.  Another way of putting it is, if you are injured by a negligent driver, you can sue their insurance company, as well as the person who caused the accident. Both are sued.

In states that do not have a direct action statute, you are only allowed under the law to sue the person who caused your accident and not the insurance company directly.

If you were in an accident and injured as a result of a negligent driver, and have questions on Wisconsin’s direct action statute and whether to sue the driver or the insurance company or both, contact Karp & Iancu, S.C. today. We are experienced in personal injury matters, having practiced law in this area for over 34 years.

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