Personal Injury Law Overview IBISWorld estimates the personal injury attorney market generated $33 billion in annual revenues during 2017. The industry is expected to increase 1.6% per year through 2022, slightly less than the overall economy. There were 56,605 personal injury firms. Factors contributing to industry growth include an aging population that is more likely to have slip-and-fall accidents, an increasing number of vehicles on the roads and a small increase in work-related deaths. Unlike most other types of lawyers, personal injury lawyers typically charge a contingency fee rather than an hourly fee. They take a percentage (averaging 33%) of clients’ settlement or award.

Successful Suits According to a Martindale-Nolo study, 70% of personal injury clients received some payout (an out-of-court settlement or court award). Almost all of the cases (96%) were settled before trial. Cases with more severe injuries result in higher payouts because of large medical expenses, lost income and pain and suffering issues that generate damages. Plaintiffs’ insurance policy limits can keep settlement offers low. Other factors that influence the size of payouts (and therefore attorney’s fees) are if the settlement is negotiated ($42,500 compared to $11,800 for those who take the first offer) and filing or threatening a lawsuit ($45,500 compared to $23,000 when not done).

All About Claims The most common type of personal injury claims is car accidents. In “no fault” states, injured people must look to insurance companies for compensation and their options for suing are limited. Other injury claims include medical malpractice, slip-and- fall accidents, dog bites, defamation (injury to reputation), wrongful death, asbestos-related diseases and conditions and defective products.   Medical malpractice and product liability claims resulted in the largest payouts, $748,000 and $679,000, respectively. Class-action lawsuits, in which an attorney represents multiple clients simultaneously, can have much larger payouts.

Personal Injury Stats Data from the National Highway Traffic Safety Administration indicates approximately 5.5 million car accidents per year, with 3 million injuries and 40,000 fatalities. Additionally, there are 60,000 injuries and 5,000 deaths from truck accidents per year. Construction accidents cause 300,000 injuries and 1,000 deaths per year, and medical malpractice is responsible for 98,000 deaths each year. It is estimated that there are 409,925 personal injury cases a year: 52% from motor vehicles, 15% from malpractice, 5% from product liability and 28% from other.

Injury Law Marketing Is Critical In general, law firms spend approximately 2% of their revenues for marketing, but personal injury lawyers are likely to spend more, or 15% to 20%. Pay-per-click fees on Google for such terms as “personal injury” or “accident lawyer” can be as much as $935, indicating the high level of competition for personal injury lawyers. Of the top 25 Google keywords, 23 were for personal injury attorneys. A 2015 study found lawyers are spending more than ever on TV advertising, or $892 million, a 68% increase from 2008. One personal injury firm in Houston spent $25 million. Orlando and Tampa have more lawyers advertising then anywhere in the US.

What the Future Holds While the market for law firms, in general, is stagnant, with many corporations relying on in-house counsel, non- lawyers and legal businesses, personal injury law is a B2C business, so it is insulated from this trend. New vehicles have enhanced safety features, which should reduce accidents and thus personal injury claims. Leasing is becoming more common, resulting in more, newer and safer vehicles on the roads. Autonomous cars are another threat to the industry. Personal injury attorneys can use drones to show jurors the scene of an accident in real time to examine the conditions there.

Advertising Strategies Advise personal injury lawyers and/or law firms that their TV commercial message should emphasize the benefits of hiring them instead of professional information, such as law school attended. Research has shown consumers don’t care about this information. All advertising messages should clearly indicate that most personal injury cases do not require an advanced fee and that the attorney receives a percentage of any settlement. If personal injury lawyers and/or law firms choose to advertise on your station, then use footage showing how they investigate a potential case: the use of drones to view accident scenes, etc.

New Media Strategies Since referrals generate the best marketing ROI, personal injury lawyers and law firms’ Websites and social media pages should aggressively promote a referral program with incentives to maximize the number of referrals. Post informative videos on your Website and social media pages, including YouTube, explaining how the law protects people in different circumstances in which injury may occur and to educate potential clients about their rights. Use digital and call tracking to measure which of your marketing efforts result in the most referrals and clients.