How Case Value is Affected By the Economy
The main issue in today’s time is the economy. When the economy slows down, the way in which personal injury cases are taken care of is affected. A few effects that occur due to a weak economy on a personal injury case are listed below.
In a small case where no catastrophe took place, claims will be evaluated in a conservative manner by insurance companies.
It should be noted that just like individuals, insurance companies also have investments. Clams suffer when these investments suffer. When this happens, insurance companies search for ways to cut back on their spending. The area of claims is typically one of the first places they look. When the economic situation is bad, a settlement that is $20,000 will become $15,000. Small cases that settle for under $10,000 will become much more complicated to handle. Refusing to pay out the maximum value on cases that are considered catastrophic is another way that they will cut back on spending.
Staff is cut, causing the process of getting claims processed to become much more difficult.
When staff is cut to save money, the attorney may have to work with adjusters who they have no prior relationship with. This causes the attorney to work hard to establish credibility to the assigned adjuster.
The amount of cases the adjuster must deal with increases in the later months of the year.
Jurors will be more uncertain about smaller cases, such as those that involved low impact collisions.
When economic times are bad, the media has a tendency for tort reform to get more powerful. The argument that is used is that:
Attorneys that work personal injury cases are ruining the businesses we operate in this difficult economy. Thus, juries are extremely likely to be just as conservative as they once were before the economy slowed down.
Our law firm has years of experience in this practice area and can be of further assistance.