Pre-Settlement Funding Levels the Playing Field & Scares Big Insurance
Your home sustains damage because of a natural disaster, and your claim is denied. You suffer severe injuries in an auto accident, and your health insurance company abruptly cancels your policy without warning. These scenarios are all-too-common. When plaintiffs are ill or injured and unable to pay their bills, pre-settlement funding can help them maintain their quality of life while their cases make their way through the legal system. Here are some of the tactics insurance companies use to protect their bottom line and pressure plaintiffs into settling for less than they deserve, and why they fear litigation funding companies whose services work to level the playing field for plaintiffs.
Deceptive Insurance Practices
Too often, insurers deny valid claims to protect their profits. According to the American Association for Justice, insurance companies often resort to deceptive practices, such as stalling until a client’s resources have been depleted. With elderly customers, companies sometimes delay reimbursement, waiting for policyholders to die. When clients take legal action, insurance companies may retaliate with threats or try to confuse policyholders with nearly incomprehensible legalese.
Why Big Insurers Fear Litigation Financing
In most cases, insurers simply leave ill or injured clients hanging, hoping that, in time, they will just give up. When plaintiffs are unable to work, bills pile up quickly. In desperation, they may settle for less than they should. Cash funding helps them make ends meet while they wait for a fair settlement or judgment, making plaintiffs more likely to persevere until their day in court.
When people are empowered to challenge their insurers, others who have had similar experiences may come out of the woodwork to hold these companies accountable, putting them on the hook for large sums in damages and legal fees. Additionally, having their unethical behavior brought to light can seriously harm insurers’ reputations, further jeopardizing their financial stability.
Pre-settlement funding is an advance on the proceeds of your lawsuit, more akin to an investment than lending. If you do not win or settle your case, you owe LawCash nothing. Pre-settlement funding companies provide financial assistance, but do not take an active role in your case. When you apply for pre-settlement funding, the team at LawCash evaluates your case and reaches out with funding options, but does not provide any legal advice or guidance.
What Can Pre-Settlement Funding Do For You?
If you’ve become ill or injured and your claims are being denied by your insurer, pre-settlement funding may be able to cover medical bills and living expenses while you navigate the lengthy litigation process, which can sometimes take years to be resolved. Contact us to learn more about how we may be able to help, or apply online today for litigation financing.