A work related injury lawsuit can take a long time to resolve. Even if the liability of the employer is clear, insurance companies intentionally drag out the case as long as possible because it increases their net profit. A personal injury litigation can take more than a year.
An employee who has suffered an accident or contracted a communicable disease at the workplace needs money to pay for medical bills and monthly expenses for food, utility bills and mortgage payments. If court proceedings take longer than expected, the effected party may avert a financial disaster by promptly applying for flexible finance options such as a lawsuit cash advance can help you after an accident.
Insurance Companies Prefer Negotiated Settlements
Most insurance companies intentionally prolong the litigation of personal injury cases because they know that employees unable to work and earn salaries are likely to encounter financial woes. These insurance companies do not like paying full coverage amounts for insurance claims. Insurance company lawyers prefer to draw out court cases so that claimants will get desperate. Cash-strapped people are more amiable when negotiating settlements.
This tactic is very effective because, as mentioned previously, workers with serious injuries cannot get back to work and so they lose income meaning they are usually broke in less than three months. Once insurance company lawyers and claims investigators notice the precarious financial situation of a claimant, they make a devious settlement offer.
Settlement deals are usually very low in comparison to the full insurance amount being claimed. However, cash-strapped people will often accept a tiny percentage of the full amount they may be entitled to as settlement payment could help them avoid bankruptcy.
Benefits of Lawsuit Cash Advance Financing
A person who is unable to work and has a pending injury-related court case is advised to take out a lawsuit cash advance instead of accepting a low settlement offer from the insurance company. A personal injury litigation loan helps an injured worker get full compensation by supporting them with a loan.
The interest rates on lawsuit financing are fairly low with many financiers now offering lawsuit loans for just two to three percent monthly interest. Based on simple mathematics, it is clear to see that taking out one of these loans will give you more money than accepting a low settlement offer.
For example, a worker gets injured at the office and he cannot go to work for six months or more. His employer’s insurance company refuses to pay the $200,000 that his particular type of injury is insured for. He hires a lawyer and takes the insurance company to court. The case gets prolonged enough that he faces a dire financial situation.
Instead of accepting a $20,000 or $30,000 settlement deal from the recalcitrant insurance company, he can just take out $80,000 as a lawsuit cash advance. The loan amount will cover his medical expenses, attorney’s retainer fees, monthly living expenses and other bills.
Even if the case drags on for a year, the 12-month compounded two percent of $80,000 is only $21,459.34 so he will only need to pay $101,459.34. Personal injury cases are statistically decided in favor of the complainant. So once the injured worker wins the case and gets the full amount of $200,000 from the insurance company, he is indeed better off.
After his lawyer takes the standard 10% fee, the worker still gets $78,540.66. Add this to the $80,000 cash advance loan he already spent and he gets a net $158,540.66 compensation for his work-related injury – more than three times the original settlement deal.
Any loan needs to be considered carefully but often, a lawsuit cash advance financing is an affordable solution to the financial woes of injured workers with pending court cases against insurance companies.
Amanda Walters – This article was written by Amanda Walters, an experienced freelance writer and regular contributor to Huffington Post. Follow her here: @Amanda_W84