Through the years, Hammond & Hammond has had the opportunity to work on and resolve many cases with many different insurance carriers. One thing that has become abundantly clear is that it is very important to know your opponent so that you can successfully strategize. What does this mean exactly? Insurance companies are NOT all created equal. Years of experience has given us significant insight into the workings of insurance companies and that insight greatly benefits our clients.
For example, some insurance companies have in-house attorneys which are paid a salary compensation. It is sad to say, but these companies don’t really care if you file a lawsuit against their insured drivers since they don’t have to pay their attorneys an hourly rate to defend the case because, as stated, they are salaried employees. Thus, a plaintiff loses some of the “cost of defense” leverage, or the leverage that a plaintiff has to convince the insurance company that it will cost more to defend the case than to simply make a reasonable settlement offer. As such, a plaintiff going against one of these companies should be prepareed to patiently fight the fight. However, down the road, most of these companies will eventually increase their offers when other legal costs and legal penalties come into play for failure to be reasonable in litigation.
Other companies have to hire attorneys on each case and pay them an hourly rate. This structure enhances the “independence” of the attorney from the insurance comany but increases the cost of defending a case. Thus, the “cost of defense” leverage is much greater against a company with this type of structure. Often times a case will settle rather quickly in these situations since dragging it out will cost the insurance company money.
Other factors include the size of the policies being sold by the insurance companies and the profitability of the companies. Often times the smaller, less-known companies will only sell the minimum policy coverage required by the state of Nevada. Then, they will fight tooth and nail to avoid paying out on their claims since they are smaller companies with less revenues.
Armed with years of knowledge and experience fighting insurance companies, the personal injury attorneys at Hammond & Hammond are able to set down with their clients and provide them with a road map and strategy to be readily prepared for the process ahead of them as they pursue a successful outcome.