Workers’ Comp Settlements: Should I Accept the First Offer?

If you are filing a workers’ compensation claim, you’re probably wondering how much money you’ll receive. It can be scary to rely on an insurance payment to cover medical bills, lost wages, and a number of other injury-related costs. So what happens if the insurance company lowballs your settlement offer? How will you know what amount is right?

Before diving into various settlement options, let’s first quickly review the system of workers’ compensation. Workers’ comp is a type of insurance held by employers to help compensate their employees in the case of an injury. In the U.S., every state except Texas requires companies to carry this insurance in some form, although there are variations in this law per state.

Although this is a helpful system in theory, it is up to the injured employee to decide whether or not to accept the benefits being offered. If for some reason they disagree with the amount of compensation decided on by the insurance company, they can reject the offer. In this scenario, they may decide to ask for a larger settlement with the help of a workers’ compensation attorney, or in some cases they may even bring the case to trial. In workers’ comp cases, the “trial” is more of an administrative hearing to work through any claim disputes. 

The First Settlement Offer

When the insurance company first contacts you with a financial offer after your injury, it may be tempting to accept it. It can certainly be confusing to determine how much money you will need to cover medical expenses and lost wages from missing work. A lawyer can help you review the offer, but they will most likely recommend you don’t take it.

There are many factors to consider when reviewing your settlement offer. How serious are your injuries? Could they be permanent? Will you need ongoing treatment? If this is a long term injury that could affect your ability to continue working, you’ll want to make sure that the compensation amount is enough to support you in the long run.

One sign that the insurance company may be lowballing your offer is if they provide it very quickly. It usually takes time to calculate all of the various factors that contribute to your settlement amount, so if they give you an offer fast, it’s probably too low. They may be banking on the fact that you won’t question the number and just accept it, especially if you need the money soon. Remember, insurance companies are trying to make a profit. Another thing to look out for is settlement offers that don’t cover all your bases. They may offer enough compensation to cover your current medical bills, but what about future ones?

How To Approach Your Workers’ Comp Settlement

It’s important to remember that if you make a workers’ compensation claim, that claim is yours. It is completely your decision on whether or not to accept a settlement, so do not give into pressure from the insurance company. They may try and rush you into accepting their offer, but there is no rush. Your best bet is to contact a lawyer who specializes in workers’ comp cases. In some cases the insurance company will wrongly deny your claim, in which case you need a lawyer who specializes in bad faith workers’ comp claim denials.

Most attorneys in this field work on a contingency fee basis, meaning you won’t have to pay them a dime until your settlement comes through. And with the help of you lawyer, your settlement will most likely be bigger than the first offer.

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