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The Rise of the Financial Downturn: Contributing Factors

by Personal Injury Claims Blawg on January 29, 2013

Guest post from personal injury lawyers.

While most businesses are hit hard by the economic crisis, the claims market actually thrives during a financial downturn. Although many experts grumble about the compensation culture, statistics show that economic booms correlate with fewer personal injury claims. So why are people calling up their lawyers so readily during a recession?

Redundancies

With more than 1.3 million people losing their jobs by 2010, due to the economic downturn, and employment opportunities few and far between, those who’d been made redundant seemed more likely to file a claim. Why?

While under employment, staff can be concerned about losing their job, if they make a personal injury claim. Even though this rarely happens – and if it did, you could take your employers to court over unfair dismissal – employees seem to be hesitant about collecting compensation. However, when made redundant, there’s no loyalty left to the business, and people seem to be more comfortable about making a claim.

There’s also a large window of opportunity to contact a solicitor, as you can make your claim up to three years after the incident occurred. With increasing numbers of people fired or made redundant, the personal injury claim figures have likewise grown.

Business Negligence

Homes and corporations alike are suffering from severe expenditure cutbacks. Businesses are having to make-do with spartan levels of staff and resources.

With employees rushed off their feet, quality of service can be jeopardised, such as in the NHS, where nurses are thin on the ground due to ‘reforms’ – medical negligence can then occur, purely because the staff-to-patient ratio is inequitable, leading to an increased amount of complaints.

Health and safety, as well as training, can be affected, and stress levels can go through the roof, leading to medical problems.

Rise Of the ‘No Win No Fee’

From personal injury claims in Liverpool to medical negligence complaints in London, ‘no win no fee’ solicitors are making it easier than ever to file a personal injury claim. With court fees being what they are, the claimant now has the security of knowing that they’ll only have to pay-up, if they win their case. Equally, solicitors are likely to give it their all, as the only way that their company makes a profit is if they win!

Poor Financial Situation

Thanks to the recession, most UK citizens are in a worse financial position than before. When your bank balance is in dire straits, making a claim will be more attractive, if that means you can lift your family above the bread line or afford a much-needed holiday. In a pinch, the possibility of money is a compelling incentive to contact a solicitor.

Also, a drop in disposable income will mean that individuals will choose cheaper services, such as home improvements that could go awry. Although low-end contracting doesn’t necessarily mean substandard work, you may find yourself injured after an inexpensive workman does a poor quality job on your house.

Composed by Hughes Carlisle personal injury solicitors in Liverpool who are reflecting on economy changes and the role we as a nation have helping improve the claiming situation.

Personal Injury Claims Blawg

Personal Injury Claims Blawg

PI claims blogger at PIClaimsBlawg
Personal Injury Claims Blawg is a personal injury law blog, inviting contributions from practitioners, PI law firms and legal academics across the UK, US and beyond. The post above has been published because of the high value associated with the author's work. Contact us if you'd like to get published today.
Personal Injury Claims Blawg

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