Eps 1563: What to Do If You're Offered a Low Ball Defense Settlement Offer
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Allan Gregory
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If a personal injury attorney represents you in an injury case, and has already sent the initial demand letters in your lawsuit, you could receive a lower settlement offer from an insurance company or a law firm representing an at-fault party. When it is time for you to negotiate your personal injury settlement, an insurance adjuster can present an unreasonably low settlement offer, perhaps as a negotiation tactic to see if you will grasp the worth of your claim. It is particularly easy for insurance adjusters to lower a claims value when a plaintiff is not represented by an attorney and is unaware of their claims value or rights to negotiate, and in situations in which a plaintiff seems desperate to collect a payout: An insurance adjuster might offer to settle for less, knowing full well that a plaintiff will probably accept anything he or she can get. The claim adjuster or the defense lawyer is expecting that you will negotiate more money than is being offered.
If the insurance companys initial offer is too low, or if you believe that it is unfair given your circumstances, you have the right to negotiate. Once you have accepted and signed an insurance companys initial offer, you cannot renegotiate that offer or bring another personal injury suit. Once you agree to the settlement and sign your release, that settlement is final -- you cannot go back and file a personal injury suit or demand a higher offer, so think carefully before doing that. Things you say and do could be held against you if you attempt to renegotiate an offer.
Based on evidence in your case, your lawyer will help you determine whether it is a lowball offer, and make a counteroffer if needed. If the insurance adjuster attempts to reach out directly to you with a lowball offer, it is important to know you are under no obligation to talk with them. It is also good practice to call or e-mail your insurance adjuster to ensure the adjuster is completely familiar with your cases details, and ask any questions before responding in writing. You should always reply in writing to an under-offer, however, it is okay to call or email an insurance adjuster before you write your official response, since this is a great opportunity to ask any questions before moving forward.
Before writing your formal response, you may want to call or email the adjuster and ask some specific questions in order to assess the basis of a low initial offer. For instance, as we mentioned earlier, if your offer is insufficient, or it is rejected because of missing information, give the adjuster the information he needs in a counteroffer. If you find out your offer was made on the basis of incomplete information, give your adjuster the information they need and have them redo your offer. Once you and your lawyer have decided the amount is large enough that you will accept an offer from your insurance adjuster, you should confirm in writing the details and that you accepted the offer, so the insurance company cannot falsely claim they did not make that offer in the future and deny payment.
Since you are not required to talk with an insurance company or an insurance claims adjuster, it is best to stay professional and leave negotiations to your attorneys, and keep in mind that an initial offer is just the starting point of negotiations. Reaching a settlement with the insurance agency can be a lengthy and complicated process filled with investigations and negotiations conducted by an insurance adjuster for the company. A settlement is usually reached between a victim and the insurance company or liable party, and parties will usually arrive at one prior to or after a trial, with the insurer or at-fault party offering compensation to the victim, and the victim agreeing to that amount. For instance, you might not receive a settlement offer until after you have won the case at trial, if the insurance company feels good about its defense, or if an employer has a self-insured retainer and declines to settle.
Some workers compensation insurance carriers and third-party claims administrators like Sedgwick, Gallagher Bassett, and Coventry may not offer a settlement until your conditions stabilize and you are granted permanent restrictions. What happens after you decline an offer from an insurance company depends on where you are in the workers compensation claims process. When an insurance company cannot reject your claims outright, it often will lower your claims value by offering a lower settlement offer that covers medical expenses, but conveniently leaves out pain and suffering compensation.
That is why we are going to cover everything you need to know about these settlement offers, including how long you will have to accept a settlement, how to tell if an offer is fair to you, and how a knowledgeable personal injury lawyer can help you fight for your damages. Your lawyer will prepare a formal offer response, notifying the insurance company you are turning down the insurance companys offer.