Dealing with worker’s comp can feel like a lot—especially when you’re hurt and just trying to get your life back to normal. A question we hear all the time is: When will the worker’s comp insurance company offer me a settlement?
Well, the short answer is: it depends. Every case is different. But on average, it usually takes about 12 to 18 months from the time you file your claim to when you actually receive a final settlement. Let’s break it down a bit more so you can get a clearer picture of what to expect.
Here’s something a lot of people don’t realize: you can actually make a settlement offer at any point in your case. With your lawyer’s help, you can put together a demand letter that lays out the amount you’re asking for. If you send it early, the insurance company might even bite.
But just because you can settle early doesn’t always mean you should. Jumping the gun might mean you’re selling yourself short—especially if you haven’t had time to fully understand all the things that go into valuing your claim, like:
If you don’t have a handle on all that, your demand might end up way lower than what your case is actually worth. And guess what? Insurance companies love that—they get to pay you less.
A smarter move is usually to wait until you’re close to hitting Maximum Medical Improvement (MMI)—basically the point where your condition has stabilized and doctors have a good sense of what your recovery looks like.
MMI, or Maximum Medical Improvement, is basically the point where your condition has leveled out—you're not expected to get significantly better with more treatment. Before you hit MMI, it’s tough to know the full impact of your injury or what kind of care you’ll still need. You’ll also want to have a clear idea of your disability rating and how your injury might affect your ability to work in the future. That’s key to making a solid, informed settlement demand.
Settling before you reach MMI can mean leaving money on the table. That said, there are times when it might make sense to settle early—like if you're in a tough financial spot or just want to be done with the whole worker’s comp process. Just keep in mind that settling early usually means accepting less than you might actually deserve.
When it comes to timing, a settlement offer from the insurance company can show up anytime—sometimes just weeks into your claim, other times it might take months or even years. Some insurers throw out early offers hoping you’ll take a lowball deal before you really know what your case is worth or before you’ve hired a lawyer. Others drag their feet, trying to avoid paying for pricey treatments or hoping you’ll get frustrated and settle for less.
At the end of the day, insurance companies are looking out for their bottom line. Their goal is to pay out as little as possible. That’s why they often try to settle before you hit MMI—when you might not yet realize how much your case is actually worth. Plus, they’d rather settle than risk the extra time and cost of going to court.
There are a few reasons an insurance company might try to settle your case sooner rather than later, like:
On the flip side, they might drag their feet if:
No matter when that offer comes in, be ready to push back. The first offer is almost never the best one. Negotiating can make a big difference in what you walk away with—and this is where having a lawyer in your corner can really pay off.
A good worker’s comp lawyer knows how to handle negotiations and make sure you’re getting the settlement you actually deserve. Insurance companies are well aware that people without a lawyer are way more likely to settle for less. Having a lawyer on your side means you’ve got someone who knows the system, can cut through the red tape, and will fight to get you the best deal possible.
Whether you’re planning to handle your settlement on your own or thinking about bringing in a lawyer, the key is knowing what you’re doing.
If you want some one-on-one guidance, feel free to give me, Rex Zachofsky, a call at 212-406-8989. The consultation’s free, totally confidential, and it could make a big difference in what you walk away with.
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