Among the many ways to grow your practice, a standard recommendation is to network with Centers of Influence (COI), like accountants or estate planning attorneys. It makes perfect sense since they offer services your clients require, and you offer services that clients of COIs may need. However, one of the most overlooked COIs with whom advisors can partner may be personal injury lawyers. Indeed, in 2014, insurance companies paid out more than $140 billion in lawsuits.¹ The initial response to this idea may be lukewarm given the image some advisors may have of the “ambulance chaser.” However, the reality is that Americans are hurt everyday by faulty products, negligent behavior or some other form of malfeasance that result in physical, mental and financial harm.

Quantifying the harm suffered by an individual is generally determined by a financial calculation that involves direct financial costs, such as lost income, medical expenses, child support and non-economic losses, like pain and suffering. An advisor can be helpful in two valuable ways, allowing him or her to create a meaningful link with personal injury attorneys to help individuals responsibly manage financial settlements.

A Framework for Helping

While state laws vary on what can be awarded on personal injury claims, advisors can be helpful to personal injury lawyers in ascertaining the future costs that a victim may need to fund. For instance, the loss of income not only impacts meeting current living standards, but it adversely affects the ability to properly fund a retirement. In many cases, the lack of appreciation for how even modest inflation can reduce purchasing power over time or what increasing longevity means to a minimally financial-secure retirement may translate into underestimating the financial recompense needed to make an individual whole.

The other way an advisor can be helpful is by providing a sound investment plan to manage any financial settlement that properly balances the current income needs of an individual, along with his or her need for long-term capital growth.

When networking with any attorney, cold calls or e-mails will likely be ineffective. The best approach is to make direct contact and have a conversation. Try to avoid any preconceived ideas or solutions; instead, start a dialogue by asking about their business and the needs of their clients with the goal of learning how your expertise may help them to better serve their clients. Personal chemistry is important, as the goal is to create a beneficial relationship.

Source(s):

1. https://www.forbes.com/sites/danielfisher/2016/01/20/the-next-great-investment-idea-somebody-elses-lawsuit/#7585ffc45102

See referenced disclosure (2) at https://blog-dev.americanportfolios.com/disclosures/