A Sample Contingency Fee Agreement (SCFA) is a legal contract between the client and the party (the insurance company) that needs to be prepared. The SCFA will specify all the rights, responsibilities, and liabilities of both parties.
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It is recommended to consider a contingency fee agreement when you are dealing with a long term client. This means that the payments will be made after the end of the term of the contract. This also applies if you deal with a fixed fee type of client.
The SCFA may not be a complicated document, but it will have a certain structure. It will include clauses for the limits of liability, terms of payment, financial records, and sometimes adjustments to the original contract. Usually, there will be several schedules set up so that the payer can decide the date for the payment. It is also important to note that a contingency fee agreement should be accompanied by other documents like a letter of acceptance, payment list, financial statement, and a copy of your insurance contract.
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A sample contingency fee agreement is not usually too expensive but it depends on the size of the client. It will only cost you a small number of fees. Another benefit is that this type of document will have all the details needed for this type of work.
Many companies offer a contingency fee agreement at a rate less than what you would normally pay out. Some will do it online and others will use a fax to send a form and it will be automatically sent to the client.
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Most of the time, you will get the approval of your client after reading the contents of your contingency fee agreement. The reason for this is that it is their main concern when deciding whether to agree to the SCFA or not.
The SCFA should not be done alone. You should be in touch with your lawyer as well so that he/she will be aware of any problems that you might face later on. If you want to prevent your attorney from charging you with some errors, you should make sure that you know how to do this.
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