What is a Settlement?

What is a Settlement?

When you are injured through the fault or negligence of another, it becomes important to receive justice. In some cases, that justice comes in the form of monetary compensation.

While it’s impossible to truly use money to replace the lost time you have experienced, or even the loss of your abilities in some cases, in our society financial compensation is all we have in an attempt to make injured parties whole.

If you have been injured, you are likely to be offered a settlement. It’s important that you understand what a settlement entails before you move forward. One of your best resources is a good personal injury attorney who can help you evaluate the settlement, and determine whether or not it is fair.

The Settlement: A Basic Overview

At its most basic level, a settlement is an amount of money offered by the other party — or, more likely, the other person’s representative, usually an insurance company — that is designed to compensate you for the damage to person or property you have sustained.

A settlement is usually determined based on how expensive the situation is for you. If you are injured, a settlement should cover the cost of medical treatment and might also cover the cost of rehabilitation. If you are permanently damaged because of the actions of another, a settlement should also take that into consideration, and offer an appropriate amount to help you support yourself moving forward.

When you accept a settlement, you usually do so with the agreement that you will not sue for more money later. You normally sign paperwork that indicates that you won’t bring legal action against the other person to try and recover more later. Insurance companies and legal representatives use settlements as a way to avoid the chance that you will go to trial and be awarded punitive damages on top of the money you clearly deserve.

Should You Accept a Settlement?

As always, whether or not you should accept a settlement depends on the situation. In some cases, as when the other party acted reckless disregard for others, you deserve punitive damages. Additionally, there are times when the representatives for the other party might offer you a lower settlement than you deserve, just to make it go away.

If you aren’t prepared with a knowledge of how much is fair, and what you should expect from the situation, you might be taken advantage of. The settlement might not be enough to truly help you recover from the physical and financial consequences of someone else’s actions.

A personal injury attorney can help you determine whether or not a settlement is fair. Before you sign anything, it’s a good idea to consult with someone who is on your side. Remember: The insurance company is interested in protecting its own bottom line. It will try to get away with paying out as little as possible. Other representatives of the party that injured you also have interests in convincing you to accept an arrangement that might not be in your best interests. When you have your own attorney, you can be sure that he or she will work toward the best possible outcome for you.

Your lawyer has experience with these situations, and can help you identify a fair settlement. And, if the settlement isn’t fair, a personal injury attorney can negotiate a higher settlement on your behalf — or take your case to court, where the other party might lose.

Don’t let someone push you into accepting a settlement that is inadequate to what you have experienced. Get help from an experienced personal injury attorney in ensuring that you receive true justice.