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HomeInsurance, Claims, DenialsThe Settlement Process for a Personal Injury Claim

Victims who are injured in an accident that resulted from another person’s negligence have two primary options in terms of recovering compensation to pay for their losses and damages. They can either recover compensation out of court through mutual negotiations, or they can take their case to trial. Although the majority of personal injury settlements are negotiated and agreed upon outside of court, it is imperative to retain a personal injury lawyer who is ready and willing to take your case to civil court. Also, taking a claim to court usually results in higher compensation.

When Does a Settlement Happen?

A settlement takes place when an insurer or defending party makes an offer for compensation, and the victim or plaintiff accepts the offer. This often happens outside of court in 85% of all personal injury cases. In fact, many agreements are made before a claim is even filed. Although in some cases you may have to initiate a lawsuit to get the insurer to take your case seriously.  If you are not receiving a fair offer, then you should consult with a personal injury attorney who has actually gone to trial for similar injury cases, before you file a lawsuit.

Settlements can also be made anytime before a case goes to trial, but before a final verdict is made. Other times, parties might become anxious during jury deliberations, and decide to settle before their verdict comes back. This is because some defendants would rather agree to a set settlement, rather than allowing a jury to decide their fate.

Full Liability Release

Once a settlement is agreed upon between both parties, the plaintiff must sign a full liability release form that relinquishes all potential claims against the defendant arising out of the accident or incident. This way, the plaintiff cannot file any further lawsuits for more compensation against the defendant later on. For instance, in a slip and fall case, a store may offer a victim $25,000, but in order to receive the payment, the victim must agree to not sue the store.

Most Cases Settle

The reason why most cases settle is that the defendant wants to mitigate and control their risks and avoid legal costs. Most personal injury cases involve insurance companies, who have the finances to pay out claims quickly. They even expect to pay out some claims because they are an averse risk. If a claim goes to trial, they lose some control over how much they pay in recompense, as well as, court costs, attorney fees, and other legal expenses. Also, many companies settle claims because they want to avoid the public eye. With so many social media platforms these days, it is easy for one incident to result in a company being publicly criticized for their negligence.

Source by Sarahbeth Kluzinski

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