In the midst of your Workers' Compensation case you be asking yourself, "When will a settlement be offered to me?" "Should I settle right away or wait it out?" Let's get into these questions and more so you're totally prepared when it comes to settling your Workers' Comp case.
The short answer: anytime you want. But just because you can settle doesn’t always mean you should.
Timing is everything when it comes to getting the most out of your settlement. Sure, you could technically start the settlement process right after your injury, but that’s usually not the best move. It’s smarter to wait until you hit Maximum Medical Improvement (MMI)—the point where your doctor decides your condition has stabilized, and further treatment isn’t likely to make a big difference. MMI gives you and your attorney a much better idea of what your future medical needs look like and how much your case is really worth.
Finding the right timing is key. If you settle too soon, you risk shortchanging yourself—especially if your condition worsens or you end up needing more treatment. On the other hand, waiting too long isn’t great either; delays can lower the value of your claim or make negotiations more complicated.
A lot of people think they have to wait for the insurance company to make the first move with a settlement offer, but that’s not true. If you’re ready to settle, you—or ideally, your attorney—can take the lead by sending a demand letter to get the ball rolling. There’s no need to sit around waiting for them to act.
Another misconception is that the insurance company has the final word on settlement amounts. That’s simply not how it works. Settlements are a two-way street. Both you and the insurance company have to agree to the terms for the deal to go through. If you don’t like what they’re offering, you’re free to counter or keep negotiating.
Speaking of offers, don’t assume the first number they throw out is the best you’ll get. In fact, it’s usually a lowball offer designed to save them money. There’s almost always room to negotiate for more, and rejecting an offer doesn’t mean you’re risking everything. It’s all part of the back-and-forth process.
Finally, keep in mind that insurance companies aren’t automatically looking out for your best interests. They’re in the business of minimizing costs, which means they might not factor in all your future needs—like ongoing medical care or lost income—unless you bring it to the table. That’s why having an experienced attorney can make a huge difference. They’ll make sure nothing important gets overlooked.
Reason #1: If the details of your case are straightforward—like when liability is obvious or the injuries are minor—they might offer a quick settlement to wrap things up fast.
Reason #2: In more complicated situations, like when there are disputes over employment relationships or pre-existing conditions, they may try to “buy you out” early just to avoid dealing with drawn-out legal battles.
Reason #3: If your injury doesn’t seem like it will require much follow-up care. If the insurance company thinks your case is low-risk, they’ll try to close it out before it has a chance to get more expensive. But here’s the catch: sometimes they’ll throw out a quick lump sum as a tactic to catch you off guard. They’re hoping you’ll jump on the offer without thinking about the long-term implications or talking it over with an attorney.
While getting an early offer might sound like a win, it’s important to be cautious. Quick offers are often lowball numbers that don’t account for future medical needs or lost wages. Before you make any decisions, it’s smart to talk to an experienced attorney.
Insurance companies might hold off on sending a settlement offer for several reasons.
First, they often wait until you've reached Maximum Medical Improvement (MMI), which means your condition has stabilized, and they have a clearer picture of your long-term medical needs. This allows them to better calculate the potential costs of your claim.
They might also delay if there are disputes about your claim, such as questions about whether the injury is work-related or whether specific treatments are necessary.
Sometimes, they’re simply stalling to see if financial pressure will push you into settling for less. This tactic, sometimes called "starve and settle," is designed to make you desperate enough to take a lowball offer. Additionally, certain companies might have internal policies or budget constraints that limit how quickly they engage in settlements or even whether they offer settlements at all.
Sometimes, the insurance company won’t take the lead and offer a settlement. That doesn’t mean you’re out of luck or stuck waiting forever. You (or better yet, your lawyer) can take the first step by sending them a demand to kick things off. Keep in mind, though, not all insurance companies do Section 32 settlements, and some injuries might not meet their criteria for a buyout.
Finding the Right Time to Settle
Figuring out the best time to settle is all about balance. Settling too early might seem tempting, especially if you’re strapped for cash, but it could mean leaving money on the table if your medical needs grow or complications pop up later. On the flip side, waiting too long can also hurt the value of your claim, as benefits keep getting paid out over time, leaving less room to negotiate.
Tips for Getting the Timing Right
Taking a thoughtful approach to settlement timing can help you get the most out of your case and avoid regrets down the road.
Got questions about your case? Not sure what your options are? Or maybe you just need someone to break it all down for you? Give me a call. No pressure, no strings attached—just a friendly chat to help you figure out the best way forward. I’m here to make the process easier and make sure you’re supported every step of the way.
Reach me, Rex Zachofsky, at 212-406-8989. Whether you’re ready to settle or just figuring out where to start, let’s talk. We’ll work together to get you the outcome you deserve.
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