Letter of Protection

A letter of protection (LOP) is an agreement signed by the attorney promising to pay medical providers from the eventual case settlement or judgment. LOPs allow injured clients to receive necessary treatment—often orthopedic care, diagnostic imaging, pain management, or physical therapy—without paying out-of-pocket. Providers accept LOPs because attorneys typically have relationships with them and because treatment continues the medical record documenting injuries. Without LOPs, clients with limited funds might delay treatment, weakening the causal link between the accident and injuries. When a case settles, the attorney pays providers from the gross settlement before distributing remaining funds to the client. LOPs create a lien against settlement proceeds in the amount of the provider's charges. Proper documentation of LOP agreements and communication with providers throughout the case is essential to avoid disputes at settlement.