What is a letter of protection?
A letter of protection (LOP) is a document developed to help injured people pay for medical care they cannot afford. Auto insurance companies won’t pay for your medical care as you go through treatment; they only pay after all your bills have been submitted, and then they make an offer to settle your case. With that being said, most insurance carriers expect the injured party to front any medical costs for themselves, but many doctors refuse to treat people through their regular health insurance if their injury was caused by a car crash.
A LOP can be sent to a medical provider by an injured party’s attorney that says the injured person agrees to pay all medical expenses owed out of any future money recovered by a settlement or trial judgment. If there is no money recovered from the case, the injured person still owes the medical provider for the full bill of treatment.
A letter of protection can also be given to a patient by a medical provider to make sure all services rendered are paid for either by case settlement, judgment or out-of-pocket.