Today we're shaking it up and talking about when it might be better not to settle. Whether you’ve got medical treatment ahead, a bad offer on the table, or just don’t feel ready, there are solid reasons to keep your case open.
First things first: you’re never required to settle. Workers’ comp settlements are 100% voluntary—for both sides. You can’t be forced into one, and neither can the insurance company.
People often ask, “Can’t a judge just settle it?” Nope. A judge can rule on disputes, but they can’t make you settle. A settlement only happens if both you and the insurance company agree.
Now, life might make you feel like you have no choice—maybe you’re behind on rent or bills—but legally, it’s still up to you. Just make sure you’re not agreeing to something just because you’re in a tough spot.
What “Settling” Really Means
When you settle a workers’ comp case, you’re usually trading a one-time payout for giving up your right to future benefits—especially medical care.
There are a few types of settlements. Some leave medical open (like indemnity-only deals), but most shut the whole thing down. You get a check, and the insurance company walks away.
That can sound great if you’re tired of the back-and-forth—but make sure you know what you’re giving up. Once the case is closed, it’s really closed.
Still Need Treatment? Don’t Settle Yet
If you’re still seeing doctors, doing PT, or might need surgery, now’s probably not the time to settle. Once you take a full settlement, you’re usually on the hook for all future medical bills—MRIs, meds, surgery, follow-ups, and even complications.
And here’s the catch: your regular insurance might not cover it, since it’s tied to a work injury. So if something goes wrong, you could be stuck paying out of pocket.
Watch Out for New Injuries
Sometimes one injury causes another—like limping on a bad knee and ending up with back pain. These are called consequential injuries, and they’re pretty common in comp cases.
But if you settle before those issues are on the record, you might be stuck paying for them yourself. Your own insurance might not cover it, and comp definitely won’t if it’s not part of the case.
So if something new starts hurting, say something.
Your Condition Could Still Change
Recovery isn’t always a straight path. You might feel okay now, but what if things flare up later? Maybe the surgery doesn’t hold, or pain gets worse. If you’ve already settled, you’re on your own.
Some folks like knowing their case is still open—just in case. That kind of peace of mind can be worth more than a quick payout, especially if you’re thinking long-term.
If there’s even a chance your condition could change, take a beat before closing things out.
Some Folks Just Like the Steady Checks
A big payout isn’t for everyone. Some people—especially if they’re on a fixed income or like to budget—feel more comfortable getting regular checks.
Sure, a lump sum sounds great… until you have to manage it. One wrong move or surprise expense, and it’s gone. For some, it’s just easier to let the checks roll in like usual.
Plus, a big deposit can mess with other benefits you might be getting. So keeping things as-is might actually be the smarter move financially.
Lowball Offer? You Don’t Have to Take It
Sometimes the insurance company throws out an offer that feels like a slap in the face—and honestly, it might be. Not every offer reflects what your case is really worth.
They’re not just looking at what they might owe you. They’re thinking about how little they can pay now and still make you bite. They discount for stuff like uncertainty, future treatment you might not get, and the fact that money today is worth more than money later.
Owe Back Child Support? Your Settlement Could Vanish
Heads-up—if you owe back child support, it can get pulled straight from your settlement. And we’re not talking just a chunk—it could be all of it.
Say you settle for $100K. After fees, you’ve got about $86,500. If you owe $40K in support, they’ll take it. If you owe the full $86,500? You get zero.
Paying off support isn’t a bad thing—it clears debt and helps your kids. But if you were counting on that money for bills or medical care, it could leave you stuck.
Settling Might Mean Giving Up Your Job
Yep, it happens—some settlements require you to quit your job. It’s not always the case, but it’s showing up more and more.
If you’re not sure whether you can go back to work—or if you're still healing—settling too soon could lock you into a decision you’re not ready to make. And if resigning is part of the deal, that bridge back to your old job might be gone for good.
Settling Can Cut Off Extra Help
Settling doesn’t just stop your checks—it can also shut down other benefits that come with an open claim.
Depending on your state, that might include things like vocational rehab, a nurse case manager, or even travel reimbursement for doctor visits. In New York, for example, you can get paid back for gas or subway rides—but only while your case is still open.
If you’ve got questions about settling—or whether you even should—I’m happy to talk it through with you.
There’s no pressure, no obligation—just honest advice based on what’s best for you. Give me, Rex Zachofsky, a call at 212-406-8989 if you want to talk. I’m here to help.
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