When Will Workers’ Comp Offer a Settlement?

There are a number of different factors that affect when workers’ comp will offer a settlement for your on-the-job injury. Some settlement offers may be extended within a matter of days, while others may take multiple years. Every case is different, so it will largely hinge on the particular facts and parties involved in your case. 

At Berlin Law Firm, we advise that you consult with an experienced workers’ compensation lawyer before deciding whether or not to accept an offer. As part of your free consultation, you will learn about your legal rights, the strengths and weaknesses of your claim, and the approximate financial value of your claim. 

How the Workers’ Compensation Settlement Process Works in Florida 

Under Chapter 440 of the Florida Statutes, settling your workers’ comp claim means entering into a binding legal agreement: 

• A stipulation and award, where you’re paid for past lost wages or medical treatment, and your claim remains open 

• A compromise and release, where you receive a lump sum or structured settlement, and the claim closes forever 

Both are filed as a joint petition with a Judge of Compensation Claims, who must review and approve the settlement before it becomes final. 

When you settle by compromise and release, the claim closes forever. Your future indemnity benefits end, and so do your medical benefits.

That finality is why we make sure every client fully understands what they are agreeing to before anything is signed. For a broader look at your rights under Florida law, visit our Florida Workers’ Compensation Hub. 

How Long Does It Take to Get a Workers’ Compensation Settlement?

Your workers’ comp case may settle in a matter of days or weeks, but many of them take at least several months. Many workers’ compensation settlements free the employer and insurance company of any financial liability for any medical bills you incur as a result of the injuries you sustained in this accident, so you will want to ensure that the settlement amount allocates for the possibility of future complications.

Insurance companies will often wait until you reach Maximum Medical Improvement (MMI), which is the point at which your doctor believes your medical condition has stabilized and likely will not improve, before extending an offer for a Florida workers comp settlement. They generally do this because they remain unsure of how much your medical costs will be. It can also benefit you to wait until you reach MMI before you agree to an offer, as you will be able to better determine whether or not the offer is fair.

Make no mistake, though, the insurance company is not your friend. It may intentionally delay your claim in order to maximize the financial pressure you feel to accept a lowball offer.

Factors That Can Change the Settlement Timeline

There are two primary factors that can change the timeline of your settlement, and they are each party’s willingness to compromise and whether or not there are any factual disputes about your claim.

Willingness to Compromise

As you might expect, if you and the insurer are both willing to compromise, it should expedite the process. Some workers comp insurers have a reputation for ruthlessly fighting for every penny in order to maximize their bottom line. Other insurance companies may tend to be more likely to extend a fair settlement offer earlier in the process.

Another way to hasten the settlement process is if you, for some reason, are willing to accept an offer that is far below market value. If this is the case, then your claim may settle much sooner than it otherwise would have, but you could be leaving a significant amount of money on the table for you and your family.

Factual Disputes about the Case

Not all workplace injuries are covered by workers comp. One common type of factual dispute about a claim is whether or not it was properly denied. Claims for compensation can be denied if any of the following are true:

• Your injury was self-inflicted
• You sustained the injury while committing a crime
• The injury resulted from alcohol or drug use

Another common type of factual dispute about a workers comp claim pertains to your medical costs and medical care. If you have sustained injuries that are severe, will lead to long-term or permanent disabilities, or still require medical attention, the uncertainty of your future bills may delay the settlement of your claim.

If you have yet to reach MMI, the insurance company knows that you are likely to continue incurring medical costs in the future, but the amount of these costs remain unknown. That uncertainty, plus common disputes about whether certain procedures are medically necessary, can potentially delay your settlement process.

Types of Workers Comp Settlements

There are two types of settlements that the insurance company may offer you:

Lump-Sum Settlement 

You receive a single payment, and the claim is closed. This is one way a compromise and release can be paid out, and it’s the option insurers often prefer, because it ends their exposure entirely. It typically includes a release of future medical benefits, so if your condition worsens down the road, you are responsible for those costs. 

Structured Settlement 

Payments are spread out over time rather than paid all at once. Like a lump sum, this is a compromise and release; the claim still closes for good, but the money is paid in installments instead of one payment. This can make sense depending on your financial situation or tax considerations. 

Medicare Set-Aside 

If you are on Medicare or close to qualifying, part of a lump-sum or structured settlement may need to be set aside specifically to cover future medical costs related to the injury. Federal rules govern how this works, and handling it incorrectly can create problems that outlast the settlement. 

Partial Settlement 

This is what’s known as a stipulation and award. Some parts of the claim, usually wage benefits, are settled while medical benefits stay open. We use this approach when your treatment is still ongoing, and it is too early to put a final number on your future medical needs. 

Benefits Your Settlement Can Cover

Florida workers’ comp settlements typically cover the following two benefits:

• Medical costs related to the injury you sustained in this workplace accident, and
• Lost wages caused by your injury

Should You Accept the Offer?

Determining whether or not to accept the offer comes down to whether you believe the offer is fair, given the extent of your injuries, the cost of your past and future medical bills, and how your injuries have impacted your ability to return to the workforce. Our attorneys at Berlin Law Firm strongly advise that you consult with an experienced workers’ comp lawyer before deciding whether or not to accept an offer. As part of your free consultation, you will learn about your legal rights, the strengths and weaknesses of your claim, and the approximate financial value of your claim.

While injured workers do sometimes receive fair offers from the insurance company, offers early in the process are often significantly below the true market value of your claim. Not only can the right attorney inform you as to the fairness of the offer you have received, but hiring the right lawyer may help expedite the process for you.

The insurance company will know that your claim needs to be taken seriously, as your lawyer will thoroughly investigate the circumstances surrounding your injuries and build your case. Knowing that our firm is prepared to go all the way to trial if need be may give the insurance company more of an incentive to give you a fair offer earlier in the process than it otherwise would have.

What to Do If You Receive a Settlement Offer 

The first offer from an insurance company is rarely their best. Carriers start low, hoping financial stress will push you to accept. 

Before responding, keep this in mind: 

• Do not sign anything until you understand what you’re agreeing to: Whether your claim stays open or closes for good depends on the type of settlement you’re being offered, so make sure you know which one it is before you sign. 

• Review your future medical needs: Think through what treatment, prescriptions, or surgery you may still need, and whether the offer accounts for it. 

• Calculate the true value: A fair payout must cover lost wages, permanent impairment benefits, and the long-term impact on your ability to work. 

• Get a free legal review: Adjusters negotiate for a living. Let a Work Injury Lawyer look over the offer to tell you if it is fair or if you should push back. 

For a broader look at your rights under Florida law, visit our Florida Workers’ Compensation Hub. 

Common Reasons Workers’ Comp Delays a Settlement 

Some delays are a normal part of the process. Others are the carrier buying time, especially when the eventual payout will be significant.  

Here are the most common reasons your settlement may be taking longer than expected: 

• Ongoing medical treatment or a condition that hasn’t stabilized yet 

• Independent Medical Examinations (IMEs) 

• Disagreements about your impairment rating 

• Challenges to determining whether the injury is work-related 

• Requests for additional medical records or documentation 

• Upcoming hearings, mediations, or other legal proceedings 

Some of these are simply part of how a claim moves through the system. Others are exactly the kind of tactic carriers use to slow-walk a claim and increase the pressure on you to accept less. If your claim has been sitting idle and you’re not getting straight answers, that’s a signal. You deserve to know what’s happening with your case, and representation that pushes back when the carrier isn’t moving. 

How Long After a Workers’ Comp Settlement Do I Get Paid? 

One of the more frustrating elements of a workers’ comp settlement is that after all the time it took to reach a settlement, you might still wait another month or two before you see any payments from your employer’s workers’ compensation insurance carrier. Some delays might be caused by administrative processing at the insurance company or payment objections. Still, in almost every case, you should receive your payment relatively soon after all settlement documents are signed and approved. 

The type of settlement you agreed to can also affect the timing of when you will be paid. If you agreed to a single lump-sum payment, it might take longer if it is large and requires additional internal approvals from the workers’ compensation insurance company. Structured settlements, where you receive regular periodic payments, might begin more quickly. Ask your Florida workers’ comp lawyer about the pros and cons of each type.  

In a small number of cases, insurers and employers might purposely delay payments by claiming, for example, that: 

• Additional documentation is needed to verify work-related injuries or approve medical treatments 

• New information has come to light about your work-related injury 

• You were observed participating in activities inconsistent with your injury-related physical limitations. 

An experienced Florida workers’ compensation attorney can negotiate and structure your workers’ comp settlement agreement in ways that foreclose these and other excuses. Our team can help you get your payment as quickly as possible.  

We can also help you understand the pros and cons of accepting a settlement agreement rather than continuing to pursue benefits under a workers’ comp claim. Insurers will want to stop benefit payments after you have achieved your maximum medical improvement (MMI) from your work-related injury. You can challenge whether you are at an MMI level, but that process will require additional time and effort, and there is no guarantee that you will prevail in that challenge. When you hire us to negotiate a settlement, you have a greater potential to get benefits without the hassle of continuing to fight for your rights. Further, with a lawyer’s advice and counsel during the settlement process, you can eliminate some of the payment delays that are often part of the process.  

What to Do if Your Case Is Taking Too Long

If your case is taking too long, it is in your best interests to consult with an experienced work injury lawyer if you have not already. An attorney may be able to expedite the settlement process by investigating and building your claim so well that the insurance company knows it needs to take your case seriously and offer you a reasonable settlement or risk going to trial.

How a Florida Workers’ Compensation Attorney Can Help 

 At Berlin Law Firm, we help injured workers understand their rights, evaluate settlement offers, and make informed decisions about their future. We can review your claim, explain your options, and help determine whether a proposed workers’ compensation settlement truly reflects the impact your injury has had on your life and ability to earn a living. 

Our team handles the communication, paperwork, and legal challenges so you can focus on your recovery. We know how insurance carriers evaluate claims because our founder spent nearly 40 years working for workers’ compensation insurance carriers, including managing the legal department of one of Florida’s largest carriers.  

With more than 20,000 workers’ compensation cases represented, and a practice that focuses exclusively on Florida workers’ comp law, we know the strategies insurers use and how to push back effectively when a claim is undervalued.