How do you know when it’s time to settle? How do you make sure you’re getting the best offer possible? And when should you hold off and push for more? Let's break down key factors to consider before signing anything, how to evaluate a settlement offer, and strategies to maximize your payout while protecting your future.
Sometimes, the answer is obvious. If the offer is too good to pass up, your lawyer may tell you, “Take it.” If it’s way too low, rejecting it is easy. But most cases fall in between—where negotiation matters.
To make the right decision, figure out what’s most important to you:
Do You Need the Money Right Now?
If you’re struggling to pay bills, a lump sum might help. But settling too soon could mean accepting less than what your case is worth.
Can You Handle a Longer Legal Process?
Workers’ comp cases take time. If you’re willing to wait, you might get a better offer. But if you don’t want the stress of ongoing hearings and paperwork, settling sooner may be the better choice.
Are You Comfortable with Uncertainty?
Settling means knowing exactly what you’re getting. If you go to trial, you could win more—or less. Some people like the security of a guaranteed payout, while others are willing to take a risk.
What’s More Important: The Money or the Medical Care?
Some workers want the biggest check possible, while others prioritize ongoing medical treatment. If you expect to need future surgeries or therapy, make sure your settlement accounts for those costs.
What’s the Insurance Company’s Game Plan?
Insurance companies settle to save money—not to help you. If they’re rushing you, it’s often because they know your case is worth more. If they’re delaying, they may be waiting for you to get impatient and accept less.
Make sure you decide when to settle—not them.
The Insurance Company Says, "This is Our Final Offer"—and Actually Means It
Insurance companies love to bluff. They’ll tell you, “This is our best and final offer,” when they still have room to negotiate. But at a certain point, they really do hit their limit—if they refuse to budge after multiple rounds, you’re probably there.
The Settlement Matches What Your Case is Worth
A good lawyer will help you figure out what your case is worth based on medical costs, lost wages, and how serious your injury is. If the offer lines up with those numbers, it’s probably a fair deal.
You’re Fighting Over Cents, Not Dollars
In the early stages of negotiating, the difference between offers can be huge. But as you go back and forth, that gap starts to shrink. If you’ve reached the point where you’re haggling over small amounts instead of big ones, that’s a sign you’re at the best offer you’re going to get.
The Timing Feels Right
Settling too early could mean leaving money on the table. Dragging it out for too long might not actually get you any more. The key is finding the sweet spot, and your lawyer should help you time it so you’re getting the best deal without unnecessary delays.
Your Lawyer Gives You the Green Light
Your lawyer has seen hundreds of cases like yours and knows how these things typically play out. If they tell you the offer is solid, it’s a good sign you’re getting the most you can.
Not every offer is worth taking. Sometimes, the smartest move is to say no and keep pushing for more. Here are the biggest red flags that signal you should hold off:
It won’t cover your future medical needs.
If you still need treatment, surgery, or ongoing care, settling too soon could leave you stuck with out-of-pocket expenses later.
The insurance company is rushing you.
If they’re pushing you to sign fast, it’s probably because they know your case is worth more. Settlements should happen on your timeline, not theirs.
The offer is way too low.
If the numbers don’t match what your case is actually worth—based on lost wages, medical costs, and long-term impact—it’s not a fair deal.
You don’t have a lawyer looking it over.
If you’re handling this alone, chances are you’re not getting the best offer possible. Insurance companies know how to take advantage of unrepresented workers.
The timing isn’t right.
If you haven’t hit Maximum Medical Improvement (MMI) or you’re still figuring out your financial needs, it’s probably too soon to settle. You don’t want to lock yourself into an agreement before you know what you’ll need down the road.
If your work injury was caused by someone other than your employer or a co-worker—like a car accident, a defective product, or an unsafe worksite—you might have both a workers’ comp claim and a third-party lawsuit. Settling your third-party case can mess with your workers’ comp benefits, so you need to handle it the right way.
How a Third-Party Settlement Can Affect Your Workers’ Comp Case
If you win a third-party lawsuit, workers’ comp might want a cut of your settlement to reimburse what they paid for your medical bills or lost wages—this is called a lien. On top of that, your workers’ comp benefits could be put on hold until the amount they "owe" you has been offset, meaning you might not see payments for a while.
But that doesn’t mean your workers’ comp case is over. You can still negotiate a separate workers’ comp settlement, and in some cases, both can be wrapped up together in a global settlement that finalizes everything at once.
How to Protect Yourself
Make sure your workers’ comp and third-party lawyers are on the same page—if they don’t coordinate, you could lose benefits or end up paying back more than necessary. When negotiating your third-party settlement, be careful it doesn’t wipe out your workers’ comp benefits and leave you with less than you expected.
Ask about a “Burns” or “Kelly” settlement, which are legal strategies that might allow you to keep receiving some workers’ comp benefits even after your third-party payout.
If you’ve got questions or want a no-BS look at your settlement offer, give me, Rex Zachofsky, a call at 212-406-8989. No pressure, no obligation—just straight answers to help you make the best decision for your situation.
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