how to negotiate a liability claim settlement

An overview of the basic strategy for negotiating a good settlement of a personal injury claim.

• Step One: Calculate Special Damages. First, you must calculate special damages. Special damages (also known as economic losses) are damages for which ...
• Step Two: Calculate General Damages.
• Step Three: Adjust the Value of Your Claim.
• Step Four: Make Your Settlement Offer.

Full Answer

How do I negotiate a claim settlement?

In a negotiation, one person moves down incrementally while the other one moves up in the same manner. They reach a settlement when they meet somewhere in the middle at a number both agree on. When that happens, the claims adjuster will draft a settlement agreement. Have your attorney read the agreement carefully before you sign it.

How to negotiate with an insurance claims adjuster?

Insurance negotiation tip number one is, know what the real value of your claim is before you ever pick up the phone and talk to the insurance claims adjuster negotiation process. One is the claim settlement range of our case.

What happens if I don’t settle my personal injury claim?

The bottom line, however, is that if you and the insurance company do not come to some sort of a voluntary settlement agreement, you will have to go to trial where a judge or jury will determine the amount of damages, if any, to which you are entitled. Will You Need a Personal Injury Lawyer?

Can I negotiate with my insurance company to reduce medical bills?

Here’s how to negotiate reductions to injury-related medical bills and liens. If you’re injured because of someone else’s negligence, you expect compensation. But settling an injury claim with the at-fault party’s insurance company can take many months. In the meantime, you need medical care.

How do you negotiate an insurance claim settlement?

8 Auto Accident Settlement Negotiation TipsInitiate a Claim as Soon as Possible After an Auto Accident.Keep Accurate Records About the Accident.Calculate a Fair Settlement.Send a Detailed Demand Letter to the Insurance Company.Do Not Accept the First Offer.Emphasize the Points in Your Favor.Get Everything in Writing.More items...

How do you negotiate a higher pain and suffering settlement?

How to Negotiate Pain and Suffering in a Car Accident ClaimPrepare well. ... Learn about pain and suffering. ... Keep your tone with the adjuster professional. ... Explain how the injury affected your life. ... Do not be shy. ... Tell the insurance adjuster how painful the whole experience was. ... Explain how painful the treatment was.More items...

How do you respond to a low ball settlement offer?

Steps to Respond to a Low Settlement OfferRemain Calm and Analyze Your Offer. Just like anything in life, it's never a good idea to respond emotionally after receiving a low offer. ... Ask Questions. ... Present the Facts. ... Develop a Counteroffer. ... Respond in Writing.

Can you argue with an insurance claims adjuster?

After considering their argument, you can form a counter-argument. An adjuster can bring up a few things, however, that you should prepare for. When you enter negotiations with the insurance company and/or claims adjuster you should have a desired settlement in mind, as well as a minimum settlement you will accept.

What should I ask for pain and suffering?

Consider the following factors in your discussion of pain and suffering: severity of your injury....The following documents, if available, should be attached to your demand letter:Medical records, bills, and receipts.Doctor's note.Police report.Witness statements.Photos of injuries.

How are insurance settlements calculated?

The basic formula insurance companies use to calculate auto accident settlements is: special damages x (multiple reflecting general damages) + lost wages = settlement amount.

Should you accept the first offer of compensation?

Unless you have taken independent legal advice on the whole value of your claim, you should not accept a first offer from an insurance company.

What do I do if my insurance offer is too low?

Here are five steps to take if the insurance company is lowballing you:Get Help from an Attorney. ... Make Sure It Is Actually a Lowball Offer. ... Figure Out Why the Insurance Company Is Lowballing You. ... Collect the Evidence You Need to Prove Your Claim. ... Keep Negotiating and/or File a Lawsuit in Court.

How do you decline a low settlement offer?

Countering a Low Insurance Settlement OfferState that the offer you received is unacceptable.Refute any statements in the adjustor's letter that are inaccurate and damaging to your claim.Re-state an acceptable figure.Explain why your counteroffer is appropriate, including the reasons behind your general damages demands.More items...•

What should you not say to an insurance adjuster?

Never say that you are sorry or admit any kind of fault. Remember that a claims adjuster is looking for reasons to reduce the liability of an insurance company, and any admission of negligence can seriously compromise a claim.

Do insurance companies try to get out of paying?

Insurance companies will seek to decrease or eliminate payments for injuries caused by an insured person's actions. After becoming injured, victims of accidents want nothing more than to move on from the traumatizing experience.

How do I prepare for an insurance adjuster?

How to PrepareFirst, take pictures. Things can move during the wait. ... Do not clean up. Unless there is a reason to do so that cannot wait, do not clean up until the adjuster arrives. ... Next, do not move items or remove them. ... Gather any documentation you have. ... You can file a police report in the event of an illegal act.

Can you negotiate a settlement offer?

While you can negotiate a settlement with a creditor at any time, debt settlement agencies require your accounts to go delinquent for 90 days—and sometimes more—before they will begin negotiating.

How long does it take to negotiate a settlement?

The average settlement negotiation takes one to three months once all relevant variables are presented. However, some settlements can take much longer to resolve. By partnering with skilled legal counsel, you can speed up the negotiation process and secure compensation faster.

Should I accept personal injury offer?

Once the offer is made, you have 21 days to decide whether or not to accept it. You should always take legal advice before accepting a Part 36 offer, especially if you have a conditional fee agreement or are using an insurance policy to cover your legal expenses, as you may find you invalidate your contract.

How long does it take Liberty Mutual to settle a claim?

In general, it can take Liberty Mutual an average of ten weeks to respond to a demand package. After reaching a settlement, it can take anywhere from two to six weeks to receive a settlement check.

What do you need to do before you can settle a personal injury claim?

Before You Can Start. Before you can begin the settlement process of a personal injury claim you must first get medical attention. Your doctor will be able to determine the type and extent of the injury and begin the appropriate treatment.

What happens if you don't settle with insurance company?

The bottom line, however, is that if you and the insurance company do not come to some sort of a voluntary settlement agreement, you will have to go to trial where a judge or jury will determine the amount of damages, if any, to which you are entitled.

How to calculate damages for loss of earning capacity?

So, the first step in calculating damages is to project your revenue based upon your life expectancy and retirement age. The expert will rely on a multitude of factors, including your income tax returns and W-2s, the state of the economy, and state of the industry in which you are engaged, as well as the salary of other people engaged in the same industry as you with similar education and training.

What is special damages?

Special damages (also known as economic losses) are damages for which money is only a comparable substitute for what was lost. This is also known as the "out-of-pocket loss" rule. Special damages can include: lost wages. lost earning capacity. medical expenses. funeral and burial expenses, and. property damage.

Why are medical expenses higher after an accident?

For example, if you decided not to seek treatment after your accident and, as a result, your medical expenses are now higher because your injuries are more difficult to treat, the value of your claim may be reduced to reflect this failure to mitigate.

How much is general damages?

General damages usually equal 1.5 to 5 times special damages, depending upon the severity of the injury.

What happens if you are partly to blame for an accident?

If you were partly to blame for the accident, your settlement will decrease by some amount based on your "contribution" of fault. Multiple defendants.

Before You Can Start

Before you can begin the settlement process of a personal injury claim you must first get medical attention. Your doctor will be able to determine the type and extent of the injury and begin the appropriate treatment. Without this critical information, there's no way to determine how much money you should demand to settle your case.

Step One: Calculate Special Damages

First, you must calculate special damages. Special damages (also known as economic losses) are damages for which money is only a comparable substitute for what was lost. This is also known as the "out-of-pocket loss" rule. Special damages can include:

Step Two: Calculate General Damages

Next, calculate general damages. General damages (or non-economic losses) are losses for which money is only a rough substitute. General damages include:

Step Three: Adjust the Value of Your Claim

Next, you must adjust the amount you calculated above to reflect the following factors:

Step Four: Make Your Settlement Offer

Finally, you are ready to submit your settlement demand letter to the defendant or his or her insurance company. Oftentimes, there will be a lot of negotiating back and forth between you and the insurance company with regard to the value of the claim, until an agreement is reached.

How to file a claim in an at fault state?

You should file a claim as soon after the accident as possible. Often, insurance companies accept claims over the phone or online. Filing a claim is the first step in the negotiation process with the insurance claim adjuster.

What Is an Insurance Claims Adjuster?

A claims adjuster usually opens in a new window works for the insurance company to investigate insurance claims. In some cases, the insurance company hires a freelance company to handle their claims. The adjuster looks at the damages resulting from an accident to property and to people. Their job is to determine the extent of the insurance company’s liability to any claimants. The adjuster represents the interests of the insurance company, not the claimants.

What is the job of an insurance adjuster?

Their job is to determine the extent of the insurance company’s liability to any claimants. The adjuster represents the interests of the insurance company, not the claimants. These damages might result from a direct claim or a personal injury case.

What does an adjuster do for insurance?

The adjuster will use several resources to determine how much it will cost to repair any property damage. They will then submit their report to the insurance company.

How to write a demand letter for an accident?

Your demand letter will include details about the accident such as: 1 The location, date, and time the accident occurred 2 How the accident happened 3 A summary of your injuries and your medical treatment 4 A summary of your damages and financial losses 5 A request for compensation – the amount you are willing to settle for

What is the response to a demand letter?

The Response to Your Demand Letter: The Fourth Step in the Negotiation Process. Once the insurance company receives your demand letter, the claims adjuster will probably respond with a letter of their own. In most cases, it is a rejection letter that disputes the value of your claim.

How to lose your rights?

One of the fastest ways to lose your rights is simply not knowing what they are. Never give the adjuster a recorded statement or sign any documents. The insurance company will ask you to sign a medical authorization to release all of your medical records. An attorney might advise you to forward your own records and bills to the adjuster instead. This prevents them from obtaining additional records that they don’t need and which they might use against you. For example, if you are seeking compensation for a back injury, any previous back conditions give the other side an argument that your injury was “pre-existing.”

How to collect evidence for a strong injury claim?

The incident should be reported, either by calling the police to report a car accident, or filing an incident report after a slip and fall accident.

How to be more confident in negotiations?

You’ll be more confident and effective if you’re well prepared for negotiations. Invest in the time to organize all your evidence, correspondence, and other paperwork before you begin active negotiations. You ’ll need to have all your claim information handy when you’re talking to the adjuster.

Can a personal injury claim be settled out of court?

Most personal injury claims are settled out of court with the at-fault party’s insurance company. High-dollar claims for serious injuries, or complicated claims (like medical malpractice) should be handled by an experienced personal injury attorney to get anywhere near the amount of compensation you deserve.

What are organizations challenged by?

Organizations find themselves challenged on a number of fronts. Let’s face it, the adjusting population is aging. Many folks who began their careers negotiating in body shops or law firms now find themselves overseeing claims processes with different dynamics and demands. Others, arguably more fortunate, find themselves golfing or playing shuffleboard in a retirement community in Boca Raton or Belize. Complicating matters is the lack of newcomers into claims organizations. Think about how many youngsters really say, “When I grow up I want to be a claims adjuster!”

Is the claims process transformed?

In recent years, the claims process has transformed to one often conducted inside. Certainly, technology has been leveraged for the benefit of staffing and production, but has it denigrated quality? Is it possible to negotiate as effectively with an attorney, claimant, or body shop over the phone versus in person?

Can you negotiate over the phone?

In some respect, negotiating over the phone can be less intimidating. It can also lead to complacency, however, where negotiations succumb to other competing priorities such as disposition. The fight over “repair versus replace” may take the back seat to getting the claim close, especially if the inside adjuster didn’t write the estimate to begin with.