A letter of protection is an arrangement between an injured person, their attorney, and a medical provider in which the provider agrees to treat the patient on a deferred-payment basis—waiting to be paid until the personal injury case resolves. It is one of the most important tools for helping seriously injured people access medical care when they have no health insurance or cannot afford out-of-pocket costs.
How a Letter of Protection Works
The attorney provides a letter of protection to the medical provider, stating that the provider will be paid from any settlement or verdict before the client receives their net recovery.
In exchange, the provider agrees to begin treatment immediately and defer payment until the case is resolved. This arrangement allows injured people without insurance—or with limited coverage—to receive necessary medical care without paying upfront.
Why It Matters for Your Personal Injury Case
Medical treatment after an accident is important for both your recovery and your legal claim. Insurance companies often argue that gaps in treatment mean an injury was not serious or was caused by something other than the accident.
A consistent medical record helps establish the extent of your injuries and supports your claim for damages. A letter of protection can make that consistent treatment possible when paying out of pocket is not.
The Lien It Creates
When your case settles, the medical provider holding the letter of protection has a contractual claim against the settlement proceeds. This claim is commonly referred to as a medical lien.
Providers are generally paid before you receive your net recovery. In many cases, however, these liens can be negotiated, particularly if the total medical bills would consume a substantial portion of the settlement. Negotiating provider liens is often an important part of maximizing the amount the injured person ultimately receives.
What to Know Before You Settle
The settlement amount is not necessarily the amount you will take home. Before accepting any settlement offer, understand what is owed to medical providers under letters of protection so there are no surprises when settlement funds are distributed.
Final Thoughts
A letter of protection is a valuable tool that helps injured people receive medical care when financial circumstances would otherwise prevent it.
When used properly, it supports both your physical recovery and the evidence needed to pursue your claim. Understanding the lien it creates is an important part of understanding what your settlement will ultimately mean for you.
Preguntas frecuentes
What is a letter of protection in a personal injury case?
A letter of protection is an agreement between an injured person, their attorney, and a medical provider in which the provider agrees to provide treatment immediately and receive payment from the settlement or verdict after the case is resolved.
Does a letter of protection create a lien on my settlement?
Yes. The provider generally has a contractual claim against your settlement proceeds and is paid before you receive your net recovery. In many cases, those liens can be negotiated.
What happens to a letter of protection if my case doesn’t settle?
If your case does not resolve successfully, the provider’s right to seek payment depends on the specific terms of the letter of protection. You should discuss those terms with your attorney before entering into the agreement.
