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When Should I Accept a Settlement?

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There are many different scenarios when it comes to settling a workers’ comp case and there are two ways to solve a workers’ comp case via settlement. One is called a Compromise & Release settlement and the other one is settlement by Stipulations

But what you (and most clients) wonder is: When should I accept a settlement offered? Settlements can be offered within a week, three months, or two years; it all depends on several factors, which we will discuss below. 

Permanent and Stationary Status 

If you reach the Permanent and Stationary (P&S) status, or Maximal Medical Improvement (MMI), you will likely get a settlement offered by the insurance company. 

Permanent and Stationary means that the doctors consider you have reached a medical plateau. In simpler words, you have improved as much as you can, and there is nothing else they can do to improve your medical condition. 

Commonly, at this status that you are offered a settlement by the insurance company. 

Insurance Denies Liability 

Many settlements occur when there is a heatedly disputed issue that can make or break a case, meaning that they denied the case, and going to trial would be the next step. The trial could be on whether the injury happened, the statute limitation has been reached, or other reasons why the insurance has denied liability for the case. At this point, there is a lot at stake, so this is when lawyers usually talk about a settlement. 

You Can Settle at Any Time 

The settlement can happen at any moment throughout the case. It depends on whether the insurance company considers that they have any financial liability. If the insurance company feels they need to offer you money to make you step back, the chances of a settlement will increase. 

When Should I Accept a Settlement? 

Ultimately, the decision is yours. However, it usually depends on the amount the insurance company offers. You must consider if this amount is worth it for you to be risk-averse or risk-tolerant. You can accept the offer or decline it and go forward with your case, but keep in mind that anything could happen; you might end up with a smaller amount or even nothing at all. 

The decision also depends, for most injured workers, on whether you are getting a fair shake and if you will have the means to take care of yourself after the settlement. This factor plays a decisive part in accepting this agreement and walking away from the case or not. 


Every case is different because there are too many factors to consider, and the offering could happen at any moment. In the end, what matters most is that you are getting the best values possible at the time of the settlement. That is why you must have an experienced and assertive attorney at your side to ensure you get the outcome you deserve. 

Pacific Workers', The Lawyers for Injured Workers is Northern California's Premier Workers' Compensation Law Firm. Representing First Responders, Health Care Workers, Construction Workers, Delivery Workers, Warehouse Workers, and all the hard-working people that keep our community moving in their Fight for Justice against the Insurance Companies. 

With over 250+ Five Star Reviews, an incredible staff of caring, well-trained, advanced technology for superior client communication, a track record of an over 98%-win rate, and giving back to our community through the Pacific Workers' Foundation, it is easy to see why Pacific Workers' is the go-to law firm for all injured workers in Northern California. Offices in Oakland, Concord, Stockton, Tracy, San Jose, and Sacramento. 

If you or a loved one need help or just have a question, give us a call at 800-606-6999 or email us at

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