Our tort system in the United States allows persons injured by the negligence of others to seek redress for the economic and emotional harm done to them.
The concept of insurance spreads the risk among all holders of insurance in order to provide compensation for those injured. Most folks would find it difficult to afford an experienced attorney at an hourly rate of $300-$400 per hour to provide counsel, evaluate the claim, conduct an investigation, sort through the maze of insurance regulations and finally negotiate or file suit on a claim.
It is often difficult to know the extent of the injury right after the incident Paying an hourly fee could result in the injured party paying more to his attorney than he could collect in damages.
The solution to getting legal representation without having to advance fees is the Contingent Fee. Under this arrangement fees are only paid when a case is resolved. At that time the attorney receives a percentage of the settlement, under an agreement entered into at the outset of the representation.
In this way the injured party can deal with an insurance company on equal footing and does not risk paying legal fees without getting anything in return.