Negotiation

If you were injured in an accident caused by negligence in Columbus, GA, you could have the right to pursue a personal injury claim seeking monetary damages. A personal injury claim can be settled as part of an insurance claim or after a lawsuit is filed. Many cases are settled through the process of negotiation between both sides of a claim. 

Through settlement negotiations, your goal will be to receive the best possible financial recovery for your costs and losses. An experienced personal injury lawyer can help you achieve this goal. 

When you retain a lawyer for help after an accident, you add knowledge and experience to your pursuit of recovery. Most importantly, you’ll get someone who will fight hard for you at the negotiation table. A dedicated legal team can help you from start to finish. 

Understanding the Negotiation Process in a Personal Injury Claim 

Understanding the Negotiation Process in a Personal Injury Claim

After a personal injury claim is filed in Georgia, both sides will typically reach out to each other in an effort to settle the claim. You might be surprised to learn that the vast majority of personal injury claims and lawsuits will settle without even going to trial. Once settlement talks begin, negotiations will follow different stages. 

Settlement Amount Proposal 

To start negotiations, your lawyer will want to present a proposed settlement amount that correctly covers your estimated damages. To do this, a personal injury lawyer will need to know the full extent of your injuries, medical costs, lost wages (and lost potential earnings), pain and suffering, and other losses due to the accident. 

To prepare a settlement amount proposal, a lawyer can use any of the following items and more: 

  • Medical records
  • Police reports
  • Witness statements
  • Expert analysis
  • Bills, statements, and invoices

An experienced lawyer can also use their own knowledge and history to compare your claim with claims similar to your own. 

Demand Letter 

One of the first steps in a personal injury claim involves sending a demand letter. A demand letter will describe the facts of the accident, issues to be addressed, and a proposed settlement figure for the other side to consider. 

The demand letter will typically include: 

  • The details and facts of the accident; 
  • Applicable laws that support your claim; 
  • Review of your injuries, expenses, and overall damages caused by the negligent party; 
  • Copies of documents supporting the claim, such as medical bills, property damage statements, and other proof of costs; 
  • An overall dollar amount that would resolve your claim 

Once received, the other side (or their insurer) might accept your offer, deny it, or counter your offer with their own idea of what the claim is worth.

Reservation of Rights Letter 

During negotiations, insurance companies might send claimants a “reservation of rights” letter regarding the claim. This letter will serve to notify the claimant that their claim is being investigated by the insurer. It will also state that the insurance company will reserve its right to deny your claim if it is not covered under the policy that applies. In doing so, the insurance company acts to protect its own interests. 

Getting a reservation of rights letter from an insurance company can seem confusing and intimidating. However, experienced personal injury lawyers have seen these letters before and know how to respond during negotiations. 

Understanding Policy Limits 

Insurance companies use policy limits to determine how they respond to claims. Based on a plan’s coverage, the insurer sets caps on how much they can pay out under policy limits. Insurers will always hesitate to pay full policy limits under any coverage plan. 

A skilled personal injury lawyer, on the other hand, will demand payment of the full amount allowed within policy limits. In these situations, it helps to have a lawyer who understands policy limits and will not settle for less during the negotiation process. 

Understanding the Strengths of Your Claim 

To negotiate effectively, an attorney needs to understand the strengths and weaknesses of a client’s claim. Your lawyer will use facts that support your claim, such as the accident’s severity or devastating effects on your health, well-being, and ability to get back to work. 

On the other hand, your claim could have weaknesses that the other side will try to exploit. An insurance company or defense attorney will always use any flaw they can find to attack your claim for compensation and downplay or deny your claim. Experienced lawyers know how to prepare for these attacks and even use them to your advantage during negotiations. 

Negotiating the Final Agreement 

After exchanging information and evidence about your personal injury claim, both sides will try to reach a final agreement. Although the negotiation process can seem tense and frustrating, negotiations often lead to a fair settlement that ends the claim.  A key factor impacting settlement negotiations is the risk of taking a case to a jury trial. 

For the personal injury claimant, there is the risk of going to trial and getting nothing at all for your efforts. For the defense side, there is the risk of a jury awarding far more than what they could have settled for. 

A final settlement agreement will include the basic facts involved, the amount agreed to, and the terms of the settlement. Settlement agreements will also state that you give up your right to sue on the claim in the future. For this reason, it is critical to get things right the first time in a negotiation. 

A Columbus Personal Injury Lawyer Can Help With the Negotiation Process 

After a serious accident, a personal injury lawyer can help you obtain the financial settlement award you deserve. Settling a personal injury claim requires a tricky negotiation process, and a lawyer can work with you throughout these steps. Contact Mark Casto Personal Injury Law Firm today at (706) 940-4030 to schedule your free consultation and learn how they can help with your negotiation process.