How Insurance Companies Work

In order to receive the settlement that is deserved and appropriate in a wrongful death case, it is important to know how the insurance company works. In other words, what makes insurance companies tick? As I have said, the reason insurance companies exist is to make a profit. Profit in its most basic form is the difference between what the insurance company collects in premiums and what it pays out on claims. The insurance adjuster’s job is to settle claims for as little as possible while limiting the financial exposure of the insurance company. In doing this, they want to delay settlement or payment as long as possible so they can keep the money in their hands longer.

Related: Is the Insurance Company Really My Friend?

Profit goals
Every insurance company has a step-by-step system for accomplishing the profit goal. There are written procedures to follow. There are scripts for the adjuster to follow when speaking to you. Every action has a purpose. It is done for a reason that is ultimately increasing their profit. Our hammer, which is our not so secret weapon, is the ability to force their hand and go to trial. This allows twelve citizens to judge your case and award a just and fair verdict. This privilege is the great equalizer.

In order to achieve our goal of a fair and reasonable settlement (justice), you must provide the adjuster with the proper documentation to pay more rather than less. When the adjuster shows the file to their supervisor, it must paint the picture for them. It must show them that even though they paid out a substantial settlement, that things could have been worse had they taken this case to trial and not accepted the settlement terms.

Michael Schafer
The Personal Injury Attorney for Louisville and Kentucky