Injury legal funding companies focus on insurance legal funding because insurance companies settle, and there is no collection risk.
If you have a personal injury case, it is likely your claim is against an insurance company. Even if you were in an accident with an uninsured driver, you will be collecting from your own insurance company. Injured at a gas station, hotel, casino, or department store? They all have insurance. Assaulted at a bar? The bar had a duty to provide a safe environment for patrons. In addition to going after the person who hurt you personally, your lawyer will go after the bar’s insurance.
Insurance Coverage and Legal Funding
For insurance legal funding, policy limits are a maximum for your case value. Often, as in the case with auto insurance, limits are expressed as two numbers. The first is a per person maximum, the second is a per-incident maximum.
For example, if you’re hit by a car with a $50k / $100k policy, and three passengers, all four injured parties are paid out of the $100k, with a $50k limit on the payout to any single party.
For most other general personal injury case types, insurance has a single limit (say, $1 million).
Sometimes, the policy includes umbrella coverage. Umbrella insurance coverage only kicks in once you exhaust the policy. Put simply, if you have more than $1 million of damages, and the policy is $1 million with an umbrella of another $1 million, the maximum case value may be as much as $2 million.
Assessing Insurance Coverage
Sometimes, policy limits are clear from the outset of a case. However, in some cases, you may have to wait until discovery, after filing your case.
Unfortunately, if your case is not against a commercial policyholder, this might make it tough to get funding early on if you have serious injuries.
Thankfully, there is minimum coverage in most states. This means that if you know a party has insurance, you can often assume a baseline for coverage.
Legal Funding Companies Avoid Cases Directly Against People or Small Businesses
Even if you have a strong case against the person or business, or if a judgment is in your favor, collection can be an issue.
Firstly, the defendant may not have the assets to pay you. Secondly, they may decide not to pay for various reasons, or file an appeal.
In any case, funding companies like predictable cases with likely payback.
Uplift Legal Funding
Uplift Legal Funding helps plaintiffs nationwide fight back against insurance companies with insurance legal funding. If you or a loved one is in need of funding, apply online or give us a call at (800) 385-3660.
To learn more about the funding process, visit our how legal funding works page.