Myth

Every adviser charges about the same

Fees for the same claim can differ widely, in amount and in structure. The headline figure is only part of it. What the fee covers, and what happens if the claim changes, differ just as much.

The myth

Advisers all charge roughly the same, so there is no point shopping around. A percentage is a percentage, and one proposal is as good as another.

What actually happens

Fees differ in structure before they differ in amount. One adviser quotes a percentage, another a fixed fee, a third an hourly rate with a budget. On the shared example those three models cost $50,000, $35,000 and $30,000 on the same $250,000 claim, and a 20% fee capped at $60,000 is the same $50,000, because the cap is not reached until a $300,000 claim. On a $100,000 claim the order changes. Illustrative figures; the comparison table shows every claim size.

Even two percentage fees can be very different engagements. One applies to the amount claimed and the other to the amount received. One is capped and the other is not. One includes help with a review and the other charges for it by the hour. One lets you leave with your records and the other has an exit fee. None of that shows in the headline number.

This site does not publish market rates, because a typical fee depends on the claim, the country and the work, and because a number without a source is not something you should rely on. What it can show is that the same claim produces different fees under different proposals, and that the differences are large enough to be worth an hour of comparison.

Where the belief comes from

Percentage fees in the same range look alike, and if you have seen only one proposal there is nothing to compare it with. The belief is less a conclusion than the absence of information.

A worked example

Two advisers each quote 20% for a $250,000 claim, $50,000 on the shared example. The first applies it to the amount claimed, caps nothing and charges for review support by the hour. The second applies it to the amount received, caps the fee at $60,000 and includes review support. On a claim paid in full and never reviewed, the fees are identical. On a claim reduced to $200,000 on review, the first adviser's fee is $50,000 plus hours; the second's is $40,000 with help included. On a claim that grows to $500,000 the next year, the first fee is $100,000 and the second is $60,000. Same percentage, three different outcomes. Illustrative figures.

What to do instead

Ask for proposals from more than one adviser, and give each the same information about your work. Put each fee through the fee comparison calculator on the same claim value, including a claim half the size you hope for.

Then compare what is included. Use the questions to ask: what the fee is based on, whether it is capped, what happens if the claim is reduced, whether review support is included, who does the work, and how you leave. The request for proposal template puts the same questions to every adviser at once.

A note on this site's figures

Every figure on this site comes from one illustrative example, so the same claim and the same assumptions sit behind every comparison. They are not market rates and not a guide to what any adviser charges. If a proposal in front of you looks very different from the example, that tells you nothing on its own. What matters is how the proposal behaves on your claim, at the size you expect and at the size you fear.