Many times, wrongful death insurance is at issue in a wrongful death lawsuit. Where the person who committed the negligent act(s) that led to the wrongful death of another person is covered by an insurance policy, the insurance company holding the policy is responsible for negotiating a settlement with the victim's survivors and/or their attorney, and for defending the insured if the matter goes to trial. Insurance companies are most typically involved in the case of auto accidents, where the negligent driver is insured under an auto insurance policy. Another circumstance where an insurance company would be involved is when the responsible party was acting in the scope of his or her employment. In this case, the employer's insurance company will be responsible for defending the insured employee in any sort of wrongful death litigation. When insurance policies are involved, as a practical matter, there are often policy limits that apply to the situation. For example, if an automobile insurance policy limits compensation in an accident causing death to one million dollars, then that is the maximum compensation that a victim's family will likely seek in a wrongful death suit. While a wrongful death damages award can exceed the policy limits, the only actual source of payment may be the insurance company, particularly if the responsible party ends up in bankruptcy court, which is a likely scenario if he or she is subject to a substantial judgment.