Money and liens

Letter of protection

A letter of protection is a written undertaking from an attorney to a medical provider promising payment from the eventual settlement, allowing treatment to proceed without payment at the time.

It is how many injury plaintiffs get care they could not otherwise afford, particularly without health insurance.

It creates a lien on the settlement. Track what accumulates under it, because those balances reduce your net recovery.

Related terms

  • Medical lien — A medical lien is a healthcare provider's claim on a settlement for treatment given on credit while the case was pending, repaid from the recovery before the claimant's share.
  • Lien — A lien is a legal claim on settlement proceeds that must be satisfied out of the recovery before the claimant receives their share.

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