How Do Insurance Companies Calculate Bodily Injury Settlements?

Tuesday, January 14, 2014

How Do Insurance Companies Calculate Bodily Injury Settlements?

Written by Malman Law, reviewed by Steve J. Malman.

Bodily injury—it’s a term you’ve likely heard thrown around in regard to car crashes and other accidents, but you may not know what it refers to in terms of the law, and you may not know how a bodily injury settlement is calculated. If you’ve sustained an injury, whether at work, in a car accident, or anywhere else, it can be helpful to know how to calculate the compensation you should seek, as it can help guide your case. There are a few ways that insurance companies do this.

Determine Who Is At Fault

The amount of any settlement will depend on who was at fault. For instance, if someone else was at fault for the injury, the settlement will be based on the amount of insurance the at-fault party has. If you were at fault, the same guidelines are in place—however, you may also claim a personal injury settlement on your own insurance policy, such as if the accident happened at work, but it was your fault.

Figure Out What Caused the Injury

Depending on the type of injury, settlement amounts will vary. For example, highway road accidents due to road conditions will be treated differently than road accidents caused by careless driving. Slip and fall accidents, work-related injuries, assault/physical attacks, and defective product injuries all get treated differently when it comes to compensation.

Identify the Type of Injury/Damages

There are a few factors that define the type of injury or damages caused by the injury, such as:

• How it will affect present or future life enjoyment
• How it will affect present or future employment
• Whether there is property to be replaced
• If there is mental defect/injury, temporary or permanent
• Age of the injured party
• Emotional damages

What is Taken Into Account When Calculating a Settlement?

Typically, there are a few different figures that insurance companies use to calculate a settlement. These include economic damages (or “special damages”) which include medical expenses, property damage, lost earnings, and estimated future medical expenses.  Non-economic damages are also factored in—things like pain and suffering, or emotional trauma.

When you need questions answered regarding a bodily injury or personal injury case, contacting a lawyer can be a great help. Feel free to contact Malman Law if you have questions or need help with a bodily injury claim.