Anyone injured in an accident through no fault of their own is entitled to seek compensation or redress for the damages suffered. This right also extends to the relatives of individuals who have died as a result of such accidents. Often, the choice of a compensation law firm occurs during a challenging period, such as mourning or while making funeral arrangements, and the decision may be influenced by a firm’s representative. What should you consider during the initial conversation with a representative? What should be included in the agreement? What tactics do salespeople use? How can you tell if a law firm is trustworthy, and most importantly, when should you be cautious? Below, we clarify these questions.

Is There a Difference Between a Compensation Law Firm and a Compensation Company?

It is crucial to distinguish between a compensation law firm and a compensation company. Although the difference might seem nominal, there is a significant disparity in the way they handle compensation proceedings. Compensation companies generally focus solely on obtaining compensation from insurers and do not deal with criminal cases outside of securing compensation. In contrast, a compensation law firm represents clients in both civil and criminal matters at all stages, potentially securing higher compensation amounts. Each client is assigned a specific attorney, known by name, who is given appropriate power of attorney to represent them in the case. The absence of an assigned representative may indicate that the compensation company lacks the necessary legal background and may push for a quick settlement with the insurer. If the agreement does not specify a representative’s name, it should be a warning sign, suggesting that the firm may not employ lawyers and cannot represent clients in court.

How Should the Process of Seeking Compensation with a Law Firm Work?

Compensation can be obtained in two ways: through a settlement with the insurer or through legal proceedings. Settling typically results in a lower amount than what might be granted through court action. Therefore, if the firm immediately suggests settling with the insurer without other justifications than the time required for court proceedings, it should raise concerns. It is important to note that court proceedings generally take about two years. Moreover, settling with the insurer often precludes any future claims, such as for an annuity. A reputable compensation law firm, focused on assisting clients in obtaining compensation, operates as follows:

• Initially, they conduct a free analysis of the compensation case and estimate the amount due to the injured parties and their families.
• The firm presents a cooperation agreement with clear and fair terms, free of hidden costs or ambiguous clauses. Signing the agreement and granting the firm the necessary powers of attorney are essential.
• The firm’s specialists analyze the documentation within the case files.
• They assist in gathering the required documentation and identify the Insurance Company.
• The firm enters negotiations with the insurer. Effective compensation seeking involves negotiating the compensation amount for incidents like car accidents, workplace accidents, or farm accidents, not pressuring the client into a quick settlement.

If negotiations do not yield satisfactory results, the case is taken to court on behalf of the client. A reputable compensation law firm represents the client at every stage of the legal proceedings. Court action often offers the potential for significantly higher compensation than what the insurer initially proposes.

Ensuring Fair Compensation and Direct Payment to the Client’s Account

This is the operational model of Polska Kancelaria Pomocy Poszkodowanym. Our mission is to help clients obtain compensation. Our expertise and experience enable us to successfully secure benefits for our clients, and our seasoned team ensures transparency throughout the process. Our compensation law firm operates efficiently and professionally.

Choosing the Best Compensation Law Firm: Focus on Where the Compensation is Paid!

It is critical to understand where the awarded funds are deposited—whether directly into the injured party’s account or first into the compensation company’s account. An honest firm should propose one of two solutions: direct transfer by the insurer into the client’s account, with the client subsequently paying the firm its agreed commission, or the insurer pays the principal amount to the client’s account and the commission to the firm’s account. Only these two solutions should be acceptable to the client. If the agreement states that the insurer’s payment first goes to the compensation firm’s account, this raises a potential risk of delay in transferring the funds to the client’s account or even issues with retrieving them. Moreover, clauses concerning the time required for the firm to pay the compensation to the client should be scrutinized.

Some firms operate under the principle that payment occurs on the 10th day of the month following the month the insurer disburses the compensation. The funds should be transferred to the client’s account promptly, with no justification for such delays. Therefore, if the agreement stipulates that the compensation is paid first to the firm’s account, followed by delayed payment to the client or includes other unacceptable clauses, it should be a red flag.

When Should the Cost of Services Be a Concern?

Another important factor is the commission, which should not be excessively high or significantly lower than market rates. While high commissions are self-explanatory, why should a low commission alarm a client? A substantially low rate may indicate that the firm lacks the resources to effectively secure compensation through legal proceedings, offering a low commission to attract clients and then pushing for a quick settlement with the insurer. An honest firm should demonstrate the tools and scope of work that justify the proposed commission rate.

If the firm offers to cover costs such as medical expenses, funeral costs, or advances, it is important to verify whether the compensation amount awarded will be reduced by these expenses. An honest firm will seek reimbursement for these costs from the insurer in parallel with the compensation proceedings, without reducing the compensation amount for the client. This should be noted while reviewing the agreement document.

Unethical Practices of Compensation Law Firms

Representatives of compensation firms may use various tactics to acquire clients. Some of the most controversial include falsely claiming to act on behalf of a prosecutor or police. This is illegal, and representatives deceive clients with such claims. Sometimes, compensation firms operate under the guise of foundations offering psychological support during this difficult time. It should also be concerning if a representative appears unannounced at the injured person’s home, suggesting they may have obtained the address unlawfully, possibly through the illegal sale of personal data. Any attempts at intimidation, suggesting an urgent decision is necessary, or persistent phone calls and pressure reflect poorly on the firm. Such behaviors are disqualifying; no honest firm operates this way. To choose an effective and responsible compensation law firm, it is best to rely on verified opinions and recommendations. Checking client reviews should be a mandatory step in finding a reliable and effective firm.

Key Considerations When Choosing a Compensation Law Firm

• The agreement should include the name of the attorney representing the client, indicating the firm has adequate staff.
• Compensation payments should go directly to the client’s account.
• The commission rate should be neither excessively low nor high and should align with market standards.
• The law firm should represent clients at every stage of the case, encouraging legal proceedings rather than pushing for a quick, lesser settlement.
• There should be no hidden costs, with clear contract terms and agreed-upon commissions and fees.
• The firm should acquire clients in a respectful manner. Representatives should not harass clients, intimidate them, suggest collaboration with law enforcement, or claim to have obtained contact details from neighbors. Instead, they should show empathy, understanding, and professionalism. The method of acquiring clients should not raise suspicions.
• The process of obtaining compensation should be transparent, with easy contact with the firm, and the contract should be written in straightforward language.

For a law firm to be considered honest, all these conditions must be met, and there should be no compromises in its selection. The primary goal of any law firm should be to assist the injured. Those who have lost loved ones in accidents must be provided with special care and feel secure in the hands of a competent firm. This is only achievable with a firm that has a skilled team of lawyers, financial backing, and a solid reputation.

Thus, now you know how to choose an effective compensation law firm.

EN01