Let's break down what a settlement really means, how it’s different from your case’s full value, why those numbers don’t always match, and how to figure out if an offer is actually fair.
One thing people often mix up in a workers’ comp case is the difference between case value and settlement value. They sound similar, but they’re totally different—and not knowing the difference can cost you big.
Case value is the full picture: what your case could be worth over time if you let it play out—weekly checks, medical treatment, surgeries, disability payments—the whole deal. Think of it as the “sticker price” of your claim.
Settlement value is what the insurance company offers to pay you now to close the case. It’s a lump sum, and it’s always less. Why? Because you’re getting paid up front, and they’re off the hook for anything that happens later. It’s not generosity—it’s math. If they think they’ll pay you $80K over a few years, they might offer $50K today and be done with it.
Understanding that trade-off is key. Don’t just look at the number—make sure you know what it actually means before you say yes.
Before you can tell if a settlement offer’s any good, you’ve got to know what your case is really worth—and that starts with your average weekly wage (AWW).
Your AWW is based on your gross pay from the year before your injury. Workers’ comp usually pays out two-thirds of that amount, but there’s a cap depending on the state.
Then there’s your disability rating—basically, how injured you are—which affects how much you get and for how long.
Other things like what you’ve already been paid, possible future medical costs, and long-term wage loss also factor in.
Even small mistakes in these numbers can cost you thousands, so it’s important to double-check everything and have someone on your side who knows how this stuff works.
If your case might be worth $80,000 over time, why would the insurance company offer $50,000 to settle now? It’s not personal—it’s just how the game works. Here’s why settlement offers almost always come in lower than the full value:
1. Money now is worth more than money later.
If they pay you today instead of slowly over years, they lose the chance to hold onto or invest that money. So they expect a discount.
2. They’re avoiding risk.
Maybe you’ll need expensive treatment. Maybe you’ll get better sooner than expected. Settling now lets them skip all the “what ifs”—and shift the risk to you.
3. You’re giving up future benefits.
When you settle, you’re usually walking away from future wage checks and medical coverage. That’s worth something—and they’re trying to pay as little as possible for it.
4. It’s just the first offer.
Insurance companies rarely come in high. That first number? It’s just the starting point. If you don’t negotiate—or have someone doing it for you—you could be leaving money on the table.
Want to know if a settlement offer’s fair? Here’s a quick gut-check:
If the math feels off or something doesn’t sit right, don’t rush it. A fair offer should make sense once you really break it down.
Not all injuries are handled the same in workers’ comp. They fall into two basic types:
Schedule injuries cover things like arms, legs, hands, feet, fingers, toes, hearing, and vision. The state assigns a set number of weeks for each body part based on how bad the damage is.
Non-schedule injuries include your back, neck, head, or internal stuff. These are based on how much your injury affects your ability to work and are paid out over time.
Schedule cases are usually more straightforward and often paid as a lump sum. Non-schedule cases are trickier, and since they play out over years, settlements tend to come with bigger discounts.
A few extra things can impact how much you get:
These might not seem huge, but they can seriously change your bottom line.
If you're not sure if an offer’s fair, confused about how they came up with your numbers, or just want someone to break it down with you—I’ve got you. Give me, Rex Zachofsky, a call at 212-406-8989. You don’t have to figure it all out alone.
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