Will Tariffs Affect My Personal Injury or Workers’ Compensation Case?

With international trade and political tensions making headlines again, many people are wondering how global events, like new tariffs or import restrictions, might impact their day-to-day lives. At ABRAMS LANDAU, we’ve even had clients ask if tariffs could affect their personal injury or workers’ compensation case. While it may sound surprising, the answer is yes. Though tariffs should have no impact on the charges by expert witnesses, physicians, private investigators, and medical records reviewers, it may have an impact in another area pertinent to Personal Injury & Wrongful Death, influencing the cost of medical care, long-term equipment, and ultimately, how much a case is worth.

What tariffs don’t affect

For most cases, tariffs have no impact on the usual fees charged by medical experts, investigators, or doctors who review records and testify in court. Their rates are generally based on domestic market factors, not international trade policies.

Where tariffs might come into play

Problems can arise in cases involving:

  • Long-term or permanent disability
  • Catastrophic injury
  • Lifelong medical supplies or personal care needs
If imported wheelchairs, crutches, prescription medications or other medical equipment are subject to high tariffs, then injured workers may be the ones negatively impacted. Doug Landau, shown here after breaking his ankle, about to take the Amtrak train to NYC this spring, en route to London!

Many of the products our injured clients rely on, such as specialized wound care items, latex gloves, mobility equipment, wheelchairs, crutches, adult diapers, catheters, or even certain medications, are manufactured outside the United States. If tariffs significantly raise the cost of these imported goods, that can cause the estimated cost of future care to rise as well.

In some cases that the Abrams Landau law team is handled, clients have needed special wipes, diapers, and other personal hygiene and another equipment that was predominantly made abroad. If the tariffs caused the prices to spike 50%, then the amount of money needed to settle those cases would likewise have to go up.

Another big cost factor in workers comp cases is prescription medications, If a medicine that is needed by an injured worker is made abroad, and subject to high tariffs, then the sudden new (and unexpected) increase in cost may cause the insurance company to stop paying for the treatment or push the prescribing doctor to switch the patient to a cheaper alternative.  If a case was settled based upon the costs of the medication pre-Tariffs, then the jump in price will be a problem for the families that relied upon the the costs of their needed medications.

Why this matters for settlement negotiations

Experienced Workers Compensation lawyers Doug Landau & Andrew Kasmer know that a dramatic increase in the retail AND the wholesale price of medical equipment, supplies and medications will be a problem for injured workers and their families. Landau & Kasmer, long time friends, attended the annual Virginia Workers Compensation Commission’s annual educational program at the Richmond Convention Center.

Insurance companies typically reserve a certain amount of money early on in a case, which is an estimate of what the case is worth based on algorithms and past cases. If something like a tariff causes a sudden increase in future costs, then these reserves will be inadequate to meet the projected expenses.

Insurers are often reluctant to adjust their reserves this drastically, and most insurance companies use claims committees or round tables to raise them incrementally. A huge increase would mean your case may no longer fit their projections since the numbers will be so far apart, and they may choose to litigate rather than settle.

How our firm is responding

At ABRAMS LANDAU, we’re closely monitoring how global changes like tariffs may influence long-term care costs and insurance negotiations. Doug Landau notes, “for catastrophic injury cases, the change in costs and future projections may be enormous. Predictability is critical in business, as there is not a whole lot of rhyme or reason to what is going on with regard to tariffs, trade negotiations and supply chains.” So far, we haven’t seen a direct impact on our settlement outcomes or our ability to successfully resolve cases. But for clients with catastrophic needs, it’s something we keep a close eye on.

If you or someone you know has a case involving lifelong medical needs or equipment, don’t wait. Lawyer Doug Landau and the team at ABRAMS LANDAU, Ltd. are committed to advocating for those injured and ensuring they receive the care and compensation they need. Contact us today to get experienced legal help in personal injury and workers’ compensation cases.