Nobody wants to endure a prolonged injury case, but that doesn’t mean you should be in a rush to settle. There are benefits and drawbacks to agreeing to an early settlement, and you need to be aware of the total scope of your actions by signing on that dotted line. In today’s blog, we take a closer look at why someone may opt to agree to an early injury settlement, and some of the drawbacks associated with that decision.
The Benefits Of Settling Early
We’re starting with the benefits of settling early, but make no mistake, in the majority of cases, agreeing to an early settlement isn’t in your best interest, at least if you do it on your own without the assistance of any attorney. With that in mind, it’s worth pointing out that the main benefit of settling early is that it puts an end to your case. That doesn’t mean you’ll immediately have access to the totality of your award, as it may be paid out in the form of a structured settlement, but you can take solace in knowing that your case is closed and money is on the way.
However, putting an end to the case is really the only significant benefit of settling early. Whether you settle early or the case finishes at trial won’t change how quickly you can return to work, so it’s not like your employment depends on when the case concludes. However, there are plenty of drawbacks associated with jumping at the first offer. We explore all of those in the next section.
Drawbacks Of Settling Early
Taking an early settlement offer can backfire in a number of ways, including:
Leaving Money On The Table – Insurance companies hope that you just want to end the case, so they put out a low-ball offer to try and settle for pennies on the dollar. You can almost always get a much better offer simply by refusing the first deal and letting your lawyer draft a well-reasoned demand letter. Worst case, the claim goes to mediation or court, and even then it’s highly unlikely you’d end up with less than that initial offer, but in most cases you’ll end up with more.
Leaving Services On The Table – It’s not just money you’re missing out on. If you are in a rush to settle and don’t totally understand the full scope of your injuries and your future medical expenses, options like physical therapy or retraining benefits may not be included in your settlement. If that happens, you’ll be fighting an uphill battle to get the case reopened and benefits added to the settlement.
May Not Have Had Time To Consult A Lawyer – Sometimes the insurance company pushes out an offer before you’ve even had time to consult with a lawyer. They may even say that you only have a couple days to decide, or that the offer is void if you consult with a lawyer. Don’t fall for their tactics. Run any offer letter by an attorney before agreeing to anything because there are so many complexities involved in workers’ compensation law. A $25,000 settlement may seem fair, but a lawyer may be able to get your $100,000, so make sure any offer letter is reviewed by a professional before you make any decisions.
Misunderstood Billing – Finally, some people say they want to settle their case early to avoid a hefty bill from their workers’ compensation lawyer. However, what they likely don’t realize is that injury lawyers don’t bill like criminal defense lawyers. Injury lawyers work on a contingency fee basis, meaning they aren’t billing for every second they are focused on your case. Instead, we get a portion of your award when you win your case. This means that the more money we get you, the more money we make through the contingency fee. When it comes to workers’ compensation, a big lawyer fee is a great thing, because it means they were able to help you achieve a massive payday. Don’t let confusion about legal expenses lead you to make a misinformed decision about settling.
To work with a lawyer who will do everything in their power to get you a fair deal, or if you want help reviewing your settlement offer, reach out to the team at Hey Workers today.
