Everett Gaskins Hancock Tuttle Hash LLP

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What can influence the value of a slip-and-fall settlement?

On Behalf of | Jan 15, 2025 | Slip And Fall/Trip And Fall

There are two main ways that people who are injured while patronizing businesses obtain compensation. The first is through insurance coverage. The second involves litigation. Those hurt due to negligence or illegal behavior can often file insurance claims seeking reimbursement for their losses. If the insurance company doesn’t cooperate or there isn’t applicable coverage, the injured party can theoretically take legal action.

Most of the time, there is insurance available after a slip-and-fall. Private property owners and businesses generally have liability coverage that applies in a slip-and-fall scenario. Frequently, the injured party may receive a settlement offer. They then have to evaluate the offer and decide how to proceed.

Understanding how insurance companies calculate settlements can help people decide when going to court might be necessary or when they need help negotiating a claim. What influences the amount of a slip-and-fall settlement?

Several factors influence settlement amounts

When looking at a slip-and-fall case, an insurance company reviews several factors carefully. The first has to do with the immediate medical expenses and likely future losses of the injured party. The higher the total costs are, the more likely the insurance company is to offer a settlement to control losses. In cases involving brain injuries or fractures that may not result in a full recovery, future costs can drastically increase the overall amount of losses sustained by the injured party.

The second factor that the insurance provider may consider is fault. There is a responsibility for all businesses and property owners to maintain their facilities in safe condition. Stronger slip-and-fall claims involve clear signs of negligence and minimal contributing actions on the part of the plaintiff.

After exploring fault, the insurance company calculates current expenses based on medical invoices and lost wages. They then calculate non-economic damages, including pain and suffering. They may do this by using a multiplier and looking at how long it takes for the plaintiff to fully recover or by performing per diem calculations based on the timeline for recovery.

Finally, the insurance company may add a third amount for likely future medical expenses and lost wages. Factors including the severity of the injuries, the impact those injuries have on professional ambitions and how injuries may affect quality of life can influence the total amount of an offered settlement.

While insurance policies are subject to a policy limit, lawsuits are not. Insurance companies are typically aware that plaintiffs can secure multi-million-dollar settlements in cases involving significant injuries. When a settlement offer seems too low, the best solution may be to counter the proposed amount with a different figure based on the current and likely future losses of the person who fell.

Calculating pain and suffering and future lost wages can be very difficult in a slip-and-fall scenario. Injured people who have the right support may have a better chance of obtaining a favorable outcome when trying to settle a slip-and-fall case with a premises liability insurance company.