Workers’ Comp First Settlement Offer: What You Need To Know

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Workers' Comp First Settlement Offer: What You Need To Know

Michigan attorney discusses how to handle the workers’ comp first settlement offer and why negotiation is the key to getting a fair amount.

Settlement is an attractive option for many disabled employees. It allows them to do their medical treatment and vocational rehabilitation without interference. Money can be used for any purpose including finding a new job, education, paying off debt, and retirement. Settlement is also income-tax free. Here are some things disabled employees need to know about the workers’ comp first settlement offer.

It’s all a negotiation

Settlement value is going to depend upon how long a disabled employee must remain off work and future medical needs. Insurance companies do not want to overpay, and they can be ruthless. We have seen insurance companies hire private investigators to follow people just because settlement was discussed.

Settlement must be treated like any other negotiation. If the workers’ comp first settlement offer is low make sure to reject it and also make sure the insurance company knows the value of your claim. This can be accomplished by securing additional medical and vocational evidence. Find out from your doctor how much medical treatment will cost in the future. Multiple your weekly rate by 52 to see how much the insurance company is paying each year in wage loss benefits. Ask for too much money and the negotiation break down.

Disabled employees should expect the workers’ comp first settlement offer to be low but should not be discouraged. We have seen first offers that are just five cents on the dollar. Be patient and let the negotiation play out. It is important to understand that nobody can be forced into a settlement.

Get a lawyer involved fast

We recommend contacting an attorney before any settlement offer is made. This will ensure that you are not locked into a bad negotiating position. For example, a woman recently contacted our office after giving her own settlement demand. The insurance company knew how much she wanted and refused to pay more even though her case had greater value. Let a professional formulate a settlement demand and take out the guess work.

It is no secret that attorneys get more money so it is important to get a workers’ comp lawyer involved as early as the first settlement offer. Insurance companies know that people who are represented understand their legal rights and have the means to enforce them. Watch out for adjusters who attempt to bully you into settling without legal counsel. You cannot be cut-off just because you spoke with an attorney and fees are just a fraction of the settlement.

Attorney fees are capped at 10% of the settlement if benefits are paid voluntarily. Attorney fees are 15% of the first $25,000 and 10% on the remainder for disputed cases. These amounts are easily made up by getting a larger settlement amount. Please call for a free telephone consultation today.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

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Workers\' Comp First Settlement Offer: What You Need To Know
Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.