A settlement is a legally binding agreement in which the injured party accepts a negotiated amount of money from the at-fault party (or their insurance company) in exchange for releasing them from further liability. Once a settlement is reached and signed, you forfeit the right to pursue any additional claims or compensation related to the same incident in the future.
Settlements are common in personal injury cases because they provide a faster and more predictable resolution compared to going to trial. They help both parties avoid the uncertainty, expense, and time commitment associated with courtroom litigation.
Key elements of a settlement include:
- A demand package submitted by your attorney outlining the accident details, medical treatment, damages, and a compensation request.
- Negotiation with the insurance adjuster, which may involve multiple rounds of counter-offers.
- A final settlement agreement, which must be signed by both parties before payment is issued.
While settlements can be beneficial, it’s critical not to accept one too early—especially if your medical condition has not stabilized or your long-term prognosis is unclear. Once you accept a settlement, it is almost always final.
An experienced personal injury attorney will help you assess whether a settlement offer is fair and in your best interest. If not, they can prepare your case for litigation to ensure you pursue full and fair compensation.
