#5 Challenging Insurance Billing Rates
Brian Friel continues his roundup of The Ten Biggest Mistakes Made By Corporate Insurance Policyholders with point number five, the importance of challenging insurance billing rates. Far too often policyholders rely on insurance litigation billing guidelines and accepting whatever reimbursement an insurance carrier is willing to provide. The norm is for insurance carriers to apply a heavy discount to submitted legal bills. There are many ways they do this, and most of them are improper. In this video, Brian addresses best practices for challenging insurance billing rates, a problem that is present with most any liability insurance claim.
Challenging Insurance Billing Rates
One of the ways that insurance carriers attempt to limit their exposure is by arbitrarily limiting hourly rates that they are willing to pay for defense attorneys. Typically, insurance carriers cap hourly rates at a level that is far below market rates available to, and paid by, policyholders. Corporate policyholder are then left to make up the difference between unreasonably low reimbursement rates proposed by an insurance carrier, and the actual rate that policyholders pay for attorneys. This delta increases with complex litigation, where hourly rates are higher, and where cases take longer to resolve.
There is a solution to this problem. Watch the video to learn more about the importance of challenging insurance billing rates, and best practices for resolving disputed billing rates.