The Economic Downturn and Personal Injury Law
Someone asked recently whether the economic downturn may effect the rights of personal injury victims. There are two areas where victims rights may be effected.
The first involves the investment losses suffered by insurance companies. When insurance companies receive premiums they invest those premiums in the market place. When the investments do well the profits of the insurance companies rise. And vice versa when the investments due poorly insurance companies suffer losses and sometimes must scramble to make up those losses. One of the areas where they scramble is paying out claims. Where in a normal economy many standard personal injury claims have a certain value and a certain time expectation for when the claim will be paid, in an economic downturn the insurance company may try even harder than they normally do to avoid paying fair value on claims to make up for investment losses and also delay paying claims so they may earn more interest on the claims money during the delay. This makes it all the more important to have an experienced personal injury law firm during an economic downturn. This leads to the second point.
During economic downturns many lawyers who normally make their living doing real estate closings, business contracts and the like, will see that part of their business dry up. Since the number of people injured or killed by the negligence of others is not impacted by the economy, some of the business lawyers will try their hand at personal injury law. In other parts of this website we explain at length why it is important for victims with serious personal injuries to be only represented by experienced personal injury lawyers. So in an economic downturn it is even more important for the victim to do their homework when choosing the right lawyer for their case.
As I often say to my friends and loved ones, I hope you never have the need for a personal injury lawyer. But if you do it is extremely important that you hire a lawyer with the necessary background, experience, training and reputation for successfully handling serious personal injury claims.