Travelers Won't Structure Attorney Fees

John Darer • November 10, 2021

Travelers' Structure Policy

 Is A Bummer for Lawyers Without Advance Planning

Have you every been at an airport on your way home or on your way somewhere and encounter a status board that looks like the above?  I think we all have.  Think about how you have felt the last time you faced that situation.


No Structured Attorney Fees | A Longstanding Travelers Insurance policy


Now imagine you're a plaintiff lawyer. It's December 15th and you've just settled a $3 million case for your client with a Defendant insured by the Travelers, or one of its subsidiaries. The Travelers Companies, Inc. is an American insurance company. It is the second largest writer of U.S. commercial property casualty insurance and the third largest writer of U.S. personal insurance through independent agents.  You've had a good year and you've maxed out your 401(k) or pension contributions and you are contemplating structured attorney fees or attorney fee deferral programs. But the flight status board shows that all flights are canceled. Those flights unfortunately never leave the gate. Travelers has had a decades long standing moratorium on structured attorney fees, even though Travelers is a substantial consumer of structured settlements in the settlement of its claims. It's the Travelers' business decision and long standing company policy. The Travelers has every right to "cancel all flights", even if it is out of line with the thinking of most other insurers.


Structured attorney fees and non qualified deferred compensation attorney fee deferral programs are highly effective tax efficient methods of addressing the financial needs of an attorney or business objectives of a law firm that earns contingency fees. Structured attorney fees are also known as structured legal fees and attorney fee structures. It is not necessary for the plaintiff to enter into a structured settlement for the attorney to avail themselves or their firm in attorney fee deferral.


Some knowledgeable insurers and defendants welcome the use of structured attorney fees as they may facilitate closure of their claim files.


What to Do if You Want to Defer Attorney Fees and Have a Travelers Case


  • Work with a settlement planner to go over your inventory of cases that you expect to settle during the next 6-9 months.
  • Identify cases where a defendant is insured by Travelers (or another insurer or Defendant or will not participate in attorney fee deferrals) and plan around them.  You can structure or defer contingency fees on another case or series of cases with more attorney accommodating insurers.  There are plenty
  • Where appropriate, use a qualified settlement fund. Note that if there is only a single claimant, there are fewer structured settlement annuity funded options. 
  • Explore and/or use attorney fee deferred compensation solution that does not require insurers' consent.


Following publication of this post, one of our sources indicated that Travelers may agree to structure attorney fees if the plaintiff is also structuring but it will not structure attorney fees on a standalone basis.


#travelersclaims  #travelerssettlements  #travelersstructured settlements #traverelersstructuredattorneyfees


Last updated April 10, 2023








independent life structured settlement annuities
By John Darer March 16, 2025
In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
Prudential and Pacific Life are among the world's most ethical companies
By John Darer March 13, 2025
Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
structured settlement annuity market expansion 2025
By John Darer March 13, 2025
John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
settlement agreement and release
By John Darer February 11, 2025
What is a Settlement Agreement and Release? What is the role of a Settlement Agreement and Release in establishing a structured settlement? What is a compromise?
structured settlement market explained
By John Darer February 11, 2025
John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
tax free structured settlement annuity
By John Darer February 7, 2025
A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
structured settlement beneficiary
By John Darer January 29, 2025
Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
new york structured settlements, new york city structured settlements, nyc structured settlement cos
By John Darer January 23, 2025
Which life insurance companies write structured settlement annuities for personal injury and wrrongful death settlements in Bronx, Brooklyn, Staten Island, Queens, Manhattan, Long Island, Westchester, Erie, Rockland, Albany,Monroe in 2025 through licensed representatives?
structured settlement annuities
By John Darer January 8, 2025
Why Structured Settlements? Because Certain Sells® Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. John Darer reviews some other reasons that structured settlements are increasingly being used to settle cases:
structured settlements history
By John Darer December 13, 2024
Structured settlements have roots that trace back more than 100 years, from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as the core personal injury settlement planning tool it is today.
More Posts