How Insurers Pick Settlement Offers In Injury Cases
For a personal injury lawyer and a client, the ideal outcome is almost always to reach a settlement offer with an insurer. You may be curious how an insurance company chooses a settlement offer so here is what you need to know.
Picking a Claims Adjuster
Just as you may choose to hire a personal injury attorney to represent your interests, the insurer selects a claims adjuster to represent its interests. This individual has the mandate to pay a settlement if the case appears to be legitimate. Generally, they won't put up a fight if a case seems concerning but could still cost the insurance company more money if it went to trial. Short of a major factual issue, such as the claimant naming the wrong defendant, or fraud, the adjuster will recommend a settlement.
Databases
The starting point for choosing a number for a settlement is usually any existing data the insurance company has. Such information comes from its own data, third-party vendors, and industry-wide sources. Normally, the database focuses on two factors. First, it will contain data about cases that are similar to yours. If you were involved in a slip-and-fall that caused a compound fracture in the wrist, for example, the adjuster would search for cases matching that description. Second, they will look at settlement amounts from prior cases in your area.
Your Demand Package
A big reason people pay for personal injury attorney services is to make sure the demand package is tight. The claimant's demand package is all of the information their lawyer sends to the insurer. It explains the basic legal reasoning for why the personal injury lawyer believes the defendant was at fault. Likewise, it covers things like medical bills, lost wages, witness statements, and reports from professionals and first responders.
The demand package is likely to be your best chance to change the insurer's compensation offer. A thorough demand package may impress upon the claims adjuster the importance of settling the case quickly and for a fair amount. Similarly, it will outline everything, reducing the risk that you might end up with less compensation than you need to get through the coming years.
Negotiation
If your demand is below or close to the number the insurer projects for your case, there's a good chance the adjuster will settle then and there. However, it may take some time to hash things out through negotiation if the numbers are too far apart. For additional information, contact a company like Todd East Attorney at Law.