Attorney Involvement Keeps Claims Soaring

Increased attorney involvement in commercial claims is a direct cause of substantial loss ratios, with costs continuing to rise. These growing costs result from high legal involvement rates, social inflation, third-party litigation funding and bad-faith lawsuits filed by attorneys.

How can you protect your business from excessive litigation? Let’s start with a look at the forces behind this growing phenomenon.

It’s no surprise that workers’ compensation claims become much costlier when litigation is involved. But just how much more expensive?

Research has found that for workers’ compensation claims with attorney involvement, the average indemnity costs are 390% higher than for unrepresented claims ($77,807 vs. $15,936). The median cost was 740% higher. It’s no wonder that temporary total disability days were 285% higher and claim duration 295% longer than when comparing attorney-involved claims with unrepresented claims.