A Letter of Protection (L.O.P.) is a written agreement—usually from a personal injury attorney to a healthcare provider—indicating a provider will be paid from the client’s future settlement or court award.
Medical providers may attempt to persuade their patients to sign a Letter of Protection.
If asked to sign off on a Lien or Letter of Protection, ask your medical provider to contact your attorney. Do not sign a Letter of Protection without consent from your personal injury lawyer.
Why LOPs are Used
- The injured person can’t afford to pay for medical treatment upfront.
- Health insurance won’t cover the care.
- Treatment is needed before a lawsuit or settlement will be resolved.
How it Works
- You’re injured (often in a car accident or similar incident).
- An attorney sends an LOP to a doctor, chiropractor, or medical facility.
- The provider agrees to treat you before claim resolution.
- The injured person agrees to pay the provider from probable and eventual settlement proceeds.
- If there is no recovery, payment terms depend on the LOP language and state law.
Who is Involved
- Patient (injured person)
- Attorney
- Medical provider
Pros
- Access to medical care without upfront payment
- Allows treatment to continue while the personal injury case is pending
- Helpful when insurance denies a claim
Cons / Risks
- Bills may be higher than the eventual payout.
- Payment comes from the injured person’s settlement proceeds, reducing their share.
- Should your claim fail, you may still owe the provider its unpaid balance.
- Complicates settlement negotiations.
Common Situations Where LOPs are Used
- Auto accidents
- Slip and fall claims
- Workplace injuries caused by the negligence of a third party
- Other personal injury claims
Important Tips
- Read the LOP carefully before signing.
- Ask whether you are personally responsible for medical bills in the event there is no settlement.
- Compare available treatment versus using available health insurance.
- Make sure the provider is experienced with LOP cases.
