Attorney Chris Davis Discussing Insurance Company Settlement Tactics
Insurance Bad Faith Complaints & Lawsuits Against Safeco
Almost 7% of all motor vehicle insurance policies in Washington State are covered by Safeco Insurance.
Safeco which had 2015 revenue of $8 billion, sells personal automobile, homeowners and specialty products through 10,000 independent insurance agencies. Safeco's parent company Liberty Mutual had $37.6 billion in revenue.
Safeco is motivated to minimize payouts on claims. Safeco makes a profit by taking in premiums and paying out as little as possible on claims – even valid claims. Their policy holder’s insurance premiums finance the massive profits Safeco and other insurers make each year.
Safeco Insurance and its subsidiaries are frequently the focus of investigations into unfair claims practices because of the volume of bad faith complaints--particularly with respect to motor vehicle accident claims. The Washington State insurance commisioner's office investigates consumer and policy-holder complaints against insurance companies.
Each year thousands of people file automobile collision insurance-related complaints. Between 2014 and 2016 there were 117 consumer automobile insurance complaints filed against Safeco.
Source: Private Passenger Auto Insurance Company Complaints, Insurance Commissioner of Washington State
Safeco Insurance Delays Settlement Or Refuses To Pay Fair Compensation
Safeco Insurance is well-known for stalling and dely tactics which often take injury victims with valid claims well past the statute of liminitations---leaving them with no way to get compensation for their injuries. The company also has a reputation for "nickle and diming" accident victims in an effort to reduce the settlement amount. While the ethics of these practice are highly questionable, the practicse are unfortunately implemented by an extremely high percentage of insurance companies. These strategies has been devised as both a money-making and a money-saving technique.
Safeco Insurance Executive Salary Scandals
Mike McGavick, Safeco's CEO in 2005, received a reported compensation package worth $8.4 million in his last year, including a salary of $1.1 million.
Source: Safeco CEO gets $14 million for first year , The Seattle Times, Apr 3, 2007
Emma Schwartzman, the great, great granddaughter of a Safeco founder, announced the filing of a lawsuit on behalf of Safeco shareholders against former CEO Mike McGavick. The central claim in the suit is that McGavick was not entitled to the $28 million he received from Safeco after he resigned as Safeco’s CEO.
Source: Granddaughter of Safeco Founder Sues Former CEO Mike McGavick and Board, InsuranceJournal, August 2, 2006
Settlements & Verdicts Against Safeco Insurance
Davis Law Group, P.S. founder Chris Davis is one of the most respected and recognized civil litigation lawyers practicing in Washington State. Davis Law Group has been named Best Injury Law Firm in Washington State by AI Dispute Resolution Awards.
If you or a loved one has been seriously injured in a motor vehicle accident in Washington State contact attorney Chris Davis and the team at Davis Law Group at 206-727-4000 to schedule your free legal consultation.
Below are just a few of Davis Law Group's settlements and verdicts against Safeco Insurance.
- $700,000 T-Bone Accident When At-Fault Driver Ran Stop Sign (Case No. 201357)
- $645,000 Pedestrian Struck By Truck In Marked Crosswalk (Case No. 201104) Read Client Story
- $550,000 Bicycle Rider Struck By Car (Case No. 201007)
- $500,000 Seattle Bicycle Rider Struck By Vehicle (Case No. 201211)
- $400,000 Woman In Wheel Chair Involved In Car Accident (Case No. 200517)
- $372,000 Motor Vehicle Accident (Case No. 200144)
- $300,000 Out Of Control Driver Causes Accident (Case No. 200806)
- $260,000 Chain Reaction, Multi-Car Collision (Case No. 200364)
- $250,000 Hit While Riding In A Marked Seattle Bicycle Lane (Case No. 201211)
- $146,148 Rear-Ended By Drunk Driver (Case No. 200199)
- $130,000 Three-Car Pile-Up Accident, Several Injured (Case No. 200708)
- $130,000 Rear-Ended on I-405 Near I-90 Interchange (Case No. 200484)
- $100,000 Rear-Ended Twice By Same Truck (Case No. 200225)
- $100,000 Motorcycle Accident Caused By Car (Case No. 201296)
- $100,000 Chain Reaction Multi-Car Rear-End Accident (Case No. 200347)
Safeco Insurance Company Profile
In 2008 Safeco Corporation was acquired by Liberty Mutual Group making the combined company the fifth largest U.S. property/casualty insurer and second largest surety writer.
Safeco appeared in the 2008 Fortune 500 company listing. Every year Fortune the American business magazine compiles, ranks and publishes a list of the top 500 U.S. public corporations based on their gross revenue. The Top Fortune 500 Company list provides Fortune magazine readers with facts and information about the top companies and their contributions to the American economy. Companies eligible for inclusion in the Top Fortune 500 Company list are are those incorporated in the United States and whose revenues are publicly available.
Safeco Advertising Slogans
"What matters to you?"
"Safeco. What's right."
Safeco Mission Statement: "Helping people live safer, more secure lives."