Why Do Insurance Companies Go Forward With An Insurance Settlement?
Insurance Settlements Often Occur Because of Specific Strategies
An insurance settlement can occur all the time, as made apparent by the many commercials asking policyholders who have won some type of suit to collect their check, or simply knowing an individual who has received an insurance settlement.
However, as a policy holder, you may wonder why an insurance company might choose to settle and what that might mean for you.
What Is An Insurance Settlement?
In short, an insurance settlement is the payment or series of payments paid out by the insurance company to the insured in order to make good on a specific insurance claim. The amount is typically determined based on a case by case basis and is typically also based on prior stipulations, set forward for the policy holder(s).
Why Does An Insurance Settlement Occur?
In general, it is because insurance companies do not want to pay over time or they typically find that they can reach an insurance settlement for a lower amount as opposed to potentially running the risk of a higher payout. Long term injuries, especially those with chronic conditions, mean that the insurance company stands to pay out over a longer length of time. They do not want to do that!
There have been many cases in which employees are injured and that injury will be sustained over a period of time. For example, if an employee injures their back, then it is not out of the ordinary that they will have chronic pain, require long term treatment, and so forth.
Thus, more often than not, insurance companies are eager to settle in order to avoid paying out in the long run.
It is important to know your rights! We can help you navigate through many different types of insurance needs and answer any questions you may have.