Where Do The Numbers In Injury Claim Negotiations Come From?
When you see advertisements for personal injury attorneys, you'll often also hear them talk about getting money for you. Ultimately, that means the personal injury lawyers have to negotiate with insurance companies or defendants. Likewise, the negotiations require both sides to come up with numbers.
You may wonder where those numbers even come from. Take a look at how both personal injury attorneys and insurance companies arrive at numbers for negotiations and settlements by reading the article below.
The Claimant's Demand
Personal injury attorneys initiate their clients' cases with demand letters. A demand is a formal notice stating who the claimant is, how they were injured, why the defendant is at fault, and the claimant's compensation requirements to settle the case.
Lawyers draw from several sources of information when deciding what the compensation demand will be. First, they evaluate cases on experience. An attorney will compare your case to similar ones they've handled. Secondly, they may also check insurance industry data for settlements of the same type. Finally, they will look at the specific features of your case, such as medical costs, lost wages, and pain and suffering.
A lawyer and client will discuss the demanded number. Once they've reached an agreement on what the demand ought to be, the lawyer will write a letter and send it to the defendant or their insurance company.
Insurers' Databases
Once an insurer receives a demand, they have to respond. The insurance company will usually appoint a claims adjuster, a professional who will assess the validity of the claim. If the claim appears legitimate, the adjuster's duty is to make an offer in the hope of reaching a settlement.
Just like personal injury attorneys do, adjusters use experience and industry data to figure out what a case is worth. One major difference, though, is the adjuster has access to company data and computer models that can tell you how much any injury is likely worth anywhere in the U.S.
Negotiation
It's notable that all this is typically just the starting point for negotiations. The insurance company probably won't jump at a claimant's demand unless their lawyer came in with a very low number and the adjuster immediately recommends taking it.
Suppose the insurer doesn't like the compensation demand. They can make a lower counteroffer. Your lawyer has to tell you there is an offer, what it is, and whether they recommend accepting it. If you don't like the counteroffer, you can counter it, too.
Some cases carry on like this for months or even years. In extreme cases, the claimant will break off negotiations and sue. To learn more, contact a personal injury lawyer near you to get started.
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