Skip to main content What is a letter of protection used for?
You sustained several injuries as a result of a personal injury incident, such as a car accident or a slip and fall. To recover from the financial losses associated with a car accident or a slip and fall, you file an insurance claim and possibly a civil lawsuit as well. Filing a civil lawsuit that seeks monetary damages means you and your personal injury attorney have found compelling evidence that indicates another party committed one or more acts of negligence. Between the filing of an insurance claim and a civil lawsuit that seeks monetary damages, you should receive enough compensation to pay off every medical bill. However, there is one significant problem.
You will not receive any compensation until several months pass. This means you find yourself in a deep financial hole, with creditors representing the healthcare industry hounding you by phone, email, and traditional mail.
How do you address the rapidly rising medical bills for which you do not have the money to cover? The answer is by sending every creditor a letter of protection. What is a letter of protection used for? A letter of protection ensures you will pay off every one of your healthcare bills when you receive compensation from an insurance company and/or win the approval of monetary damages that result from the filing of a civil lawsuit.
At Morgan and Morgan, our team of experienced personal injury lawyers helps clients draft and send letters of protection that prevent healthcare organizations from taking legal action to recover the value of medical bills. Drafting a persuasive letter of protection involves describing the status of an insurance claim and a personal injury lawsuit that seeks monetary damages. Sending one or more letters of protection might allow you to delay payments for medical bills until you receive the compensation that you deserve to cover the costs of medical bills
If you sustained one or more injuries caused by a personal injury incident, schedule a free case evaluation to determine whether drafting and sending a letter of protection is the right legal maneuver for your case.
How Does a Letter of Protection Work?
Getting involved in a personal injury incident, such as a product liability case, can quickly generate medical expenses that run into thousands of dollars. The costs of diagnostic tests, treatment programs, and physical therapy sessions quickly add up to put you in financial distress. You also might have to pay out-of-pocket for prescription medications and the use of an assistive device such as a wheelchair.
Like all creditors, healthcare providers send out bills that require some form of payment within a certain period, which typically runs for 30 days. If you fail to cover the minimum amount due, your healthcare creditors label the bills as late, and if you do not take care of your medical bills after a period such as 90 days, the late payments turn delinquent and your credit score takes a significant negative hit.
Sending a letter of protection informs your healthcare creditors that you have filed an insurance claim and when applicable, a civil lawsuit that seeks monetary damages. Drafted by one of the personal injury attorneys at Morgan and Morgan, a letter of protection guarantees that once you receive compensation from an insurance company and/or civil lawsuit, the money received will go directly towards paying off medical bills.
You have three reasons why your lawyer drafts and sends a letter of protection.
Workplace Injury
Employers in 49 of the 50 states must purchase workers’ compensation insurance to cover the costs associated with workplace injuries. The financial liability to pay for medical care falls on the shoulders of your employer. Unfortunately, processing workers’ compensation claims takes a considerable amount of time mostly due to the high volume of claims submitted by employees throughout the United States. Since most workers’ compensation claims get approved by employer insurance companies, sending a letter of protection to a healthcare creditor represents an effective way to take care of a substantial financial obligation.
Personal Injury Incident
After a personal injury incident, one of the most important steps to take involves seeking medical care both for health and financial reasons. You cannot expect approval of an insurance claim and a favorable ruling from a civic court judge unless you submit physical evidence that you sustained one or more injuries that required medical care. Sending a letter of protection informs every healthcare creditor about the status of an insurance claim, as well as where your civil lawsuit stands in the judicial system.
The letter of protection sent to healthcare creditors agrees to pay off medical bills once you receive compensation in the form of an approved insurance claim and/or a favorable ruling for a civil lawsuit.
Protect Your Credit Rating
As with any type of bill, falling behind on paying off medical bills can damage your credit rating. Just one missed payment on a 30-day billing cycle drops your credit score by a significant value. Sending a letter of protection should prevent a healthcare provider from sending your bill to a collection agency. You also benefit by sending a letter of protection because a healthcare creditor should not report your outstanding debt to the three major credit reporting agencies, which are Equifax, Experia, and TransUnion.
Hire a Morgan and Morgan Attorney to Send a Letter of Protection
A letter of protection must include specific details concerning your personal injury incident. It must include the date of the accident, as well as the contact information of the insurance company processing your claim. You also should submit a copy of the formal incident report, as well as the name and contact information of your personal injury attorney.
Learn more about sending a letter of protection to a healthcare creditor by scheduling a free case evaluation today with one of the personal lawyers at Morgan and Morgan.
