Negotiation is an integral and required part of subrogation. Some subrogation professions thrive on it and are exceptional at negotiation techniques. Others can see it as a necessary evil.
Negotiation Strategies and Counter Offers
Negotiation is an integral and required part of subrogation. Some subrogation professions thrive on it and are exceptional at negotiation techniques. Others can see it as a necessary evil.
Let’s take a look at different strategies for subrogation professionals at any level of experience.
Don’t lower your planned counteroffer because you received an offer far below what you expected. If your lien is $50,000 and you received an offer of $30,000 rather than the $40,000 you expected, don’t counter with a proportionate number. This can show that you are not serious about the process or are admitting the claim is not as good as initially presented.
Have a target amount. Avoid making a spur of the moment offer based on feelings or implied pressure. Take time to evaluate the claim and be prepared to provide reasons and evidence to support your offer. Aim for your target amount and be sure not to accept anything less than your established baseline.
It’s ok to have multiple counteroffers. While it is easy to think that a quicker resolution is better, it can mean a lower settlement. If you are not ready to decide or counter, then don’t. Be 100% sure that the claim is ready for resolution and that you have all the facts.
Negotiations aren’t just for liability, cost of parts, amount of treatment, or lost time. Each party is trying to get the best deal for themselves, the insured, or the employee. It is best to ensure you know exactly what you are negotiating. That will assist with planning how to proceed.
Don’t be intimidated by someone with more experience or more aggressive strategies. Be, or at least act like the expert. I have found this most prevalent in negotiating with attorneys. Just remember, the other party is dealing with the same facts and rules that you are.
Remember to have a plan. Write it out. Note the pros and cons of the claim and stick with your position.
Negotiation is an integral and required part of subrogation. Some subrogation professions thrive on it and are exceptional at negotiation techniques. Others can see it as a necessary evil.
Negotiation Strategies and Counter Offers
Negotiation is an integral and required part of subrogation. Some subrogation professions thrive on it and are exceptional at negotiation techniques. Others can see it as a necessary evil.
Let’s take a look at different strategies for subrogation professionals at any level of experience.
Don’t lower your planned counteroffer because you received an offer far below what you expected. If your lien is $50,000 and you received an offer of $30,000 rather than the $40,000 you expected, don’t counter with a proportionate number. This can show that you are not serious about the process or are admitting the claim is not as good as initially presented.
Have a target amount. Avoid making a spur of the moment offer based on feelings or implied pressure. Take time to evaluate the claim and be prepared to provide reasons and evidence to support your offer. Aim for your target amount and be sure not to accept anything less than your established baseline.
It’s ok to have multiple counteroffers. While it is easy to think that a quicker resolution is better, it can mean a lower settlement. If you are not ready to decide or counter, then don’t. Be 100% sure that the claim is ready for resolution and that you have all the facts.
Negotiations aren’t just for liability, cost of parts, amount of treatment, or lost time. Each party is trying to get the best deal for themselves, the insured, or the employee. It is best to ensure you know exactly what you are negotiating. That will assist with planning how to proceed.
Don’t be intimidated by someone with more experience or more aggressive strategies. Be, or at least act like the expert. I have found this most prevalent in negotiating with attorneys. Just remember, the other party is dealing with the same facts and rules that you are.
Remember to have a plan. Write it out. Note the pros and cons of the claim and stick with your position.
