A reasonable settlement offer is one that fully covers all of your accident-related losses, both present and future, while a low offer falls short, leaving you to bear the financial burden. If you have received an offer from an insurance company, it is vital to understand the difference and what you can do about it. After a serious accident, seeing that first offer might feel like a lifeline, but it is important to pause before accepting, especially when you are grappling with injuries and the stress of recovery in a city as demanding as New York.
For many New Yorkers, navigating life after an injury means facing a new reality. The path forward might seem uncertain, but you do not have to walk it alone. New York personal injury lawyers at Hach & Rose, LLP, understand this journey and what it takes to move forward. Understanding what is a reasonable settlement offer is the first step toward securing your future and ensuring you have the resources you need to heal properly.
Why Insurance Companies Often Start with Low Offers
It is a common misconception that an insurance company’s initial offer reflects the true value of your claim. In reality, an insurer’s primary responsibility is to its shareholders, which means protecting its bottom line. This often involves resolving claims for the lowest possible amount.
They may use sophisticated software to calculate an initial offer based on limited data, or they may hope that an injured person, anxious about mounting bills, will accept a quick but inadequate payment. Insurance companies negotiate settlements with their own interests in mind. An adjuster’s job is to settle the claim efficiently for their company, not necessarily to ensure your lifelong needs are met. This is why their first offer is almost always just a starting point for negotiations.
What Does a “Reasonable” Settlement Actually Cover?
A fair and reasonable settlement is not just a single number; it is a comprehensive calculation that accounts for every way an injury has impacted your life. These impacts are legally categorized as damages. An experienced personal injury attorney helps to identify and calculate the full extent of these damages to build a strong case for the compensation you deserve.
Economic Damages: The Tangible Costs
Economic damages are the measurable financial losses you have sustained due to the accident. A thorough claim must account for all of these costs, both those you have already paid and those you are likely to face in the future.
These often include:
- All past and future medical bills (hospital stays, surgeries, physical therapy, medication)
- Lost wages from time missed at work
- Diminished future earning capacity if you cannot return to your previous job
- Costs for vocational rehabilitation or job retraining
- Expenses for in-home care or modifications to your home
- Other out-of-pocket expenses related to your injury
Non-Economic Damages: The Intangible Impact
Non-economic damages compensate you for the profound, personal, and non-financial ways the injury has affected your life. While these losses do not have a clear price tag, they are just as real and devastating. Calculating their value requires skill and a deep understanding of how juries in places like the Bronx and Brooklyn value such losses.
These damages may include:
- Pain and suffering
- Emotional distress and mental anguish
- Loss of enjoyment of life
- Permanent disability or disfigurement
- Loss of consortium (the impact on your spousal relationship)
Insurance companies often do not include the value of non-economic damages in their settlement offers. A tenacious injury attorney will fight for these losses, even if it means taking a case to trial to convince a jury to award a fair amount of compensation when the insurer won’t offer a reasonable settlement.
How to Determine the True Value of Your Claim
Calculating the full value of a personal injury claim is a complex process that goes far beyond simply adding up medical bills. It requires a detailed investigation, the gathering of extensive evidence, and often the input of various professionals.
A strong case is built on a foundation of proof. This includes gathering all medical records, police reports, witness statements, and documentation of lost income. Can I file a personal injury claim if I don’t have all of this right away? Yes—and a good legal team will help fill in the gaps. However, to demonstrate the need for future care and the full extent of non-economic losses, it takes much more. This is where the guidance of a dedicated legal team becomes invaluable. They can work with economic specialists to create a complete picture of your life post-accident.
The Danger of Accepting a Lowball Settlement Offer
Accepting a low settlement offer might provide temporary relief, but it can lead to devastating long-term consequences. Once you sign a release and accept a settlement, you forfeit your right to seek any further compensation for that injury, no matter what happens in the future.
If your medical condition worsens or you discover you need another surgery down the road, you cannot go back and ask for more money. The initial low offer will not cover these unforeseen costs, leaving you and your family to face a difficult financial future. This is a risk you do not have to take.
Why a Low Offer Is Never the Final Word: A Look at Real Results
Insurance companies may present their offers as final, hoping you will believe there is no other option. However, a low offer is not the end of the conversation; it is the beginning of the fight for fair compensation. The legal team at Hach & Rose is prepared for this fight and has a proven track record of turning inadequate offers into substantial verdicts.
The Hach & Rose trial teams recently secured four exceptional jury verdicts for our clients in Manhattan, the Bronx, Brooklyn, and Rockland County. A critical fact connects all these cases: Not one of these clients received a top settlement offer in excess of $1 million. The insurance companies undervalued their claims, but we took the fight to a jury.
Our recent results include:
- $6 million verdict for a construction worker injured in a ladder fall.
- $4.2 million verdict in a case involving a car versus truck accident.
- $3.2 million verdict for a construction worker who was struck by a falling object.
- $1.25 million verdict in a medical malpractice case.
These outcomes were not achieved overnight. They were the result of 3–4 weeks of trial for each case, where our attorneys presented compelling evidence to a jury who ultimately delivered justice. Insurance coverage often plays a central role in these trials, influencing both the defence strategy and the compensation available.
How Hach & Rose Builds a Case for Maximum Compensation
Achieving verdicts of this magnitude requires unwavering dedication, significant resources, and a strategy designed to show a jury the true human cost of an injury. We are willing to spend the necessary time and money to build the strongest case possible for every client.
Leveraging Experts for a Comprehensive Picture
We work with leading experts to paint a clear and undeniable picture of our clients’ needs. For example, in the case of the construction worker who received a $6 million verdict, our team engaged life care planners. These professionals created a detailed plan outlining every aspect of his future medical and personal needs. This approach serves as a practical guide to seeking compensation that truly reflects the long-term impact of serious injuries. We also worked with economists who calculated the total financial impact of his injuries over his lifetime, ensuring the jury understood exactly what was at stake.
Dedication to Our Clients’ Futures
All of our clients in these cases suffered devastating injuries that require extensive past and future medical care. For one client, a hardworking father of three and the family’s primary breadwinner, the injuries meant a lifetime of expensive care. The verdict we secured for him provides the resources to support his family and access the medical treatment he needs without the constant stress of financial ruin.
Willingness to Go to Trial
Our success demonstrates a core principle: we prepare every case as if it will go to trial. This readiness shows insurance companies that we will not accept lowball offers. We are committed to going the distance for our clients, presenting their stories to a jury of their peers to secure the outcome they rightfully deserve. This is especially critical in cases where New York’s laws, such as those governing comparative negligence (CPLR § 1411), might be used by insurers to reduce their liability.
What to Do After Receiving a Low Settlement Offer
If you have received an offer that seems too low, it is crucial to act strategically to protect your rights.
- Do Not Sign Anything: Do not sign any documents, releases, or checks from the insurance company without having them reviewed by an attorney.
- Organize Your Documents: Gather all accident-related paperwork you have, including medical bills, records of missed work, and any correspondence from the insurer.
- Avoid Recorded Statements: You are not obligated to provide a recorded statement to the other party’s insurance company. These can be used against you later.
- Consult an Attorney: The most important step you can take is to discuss the offer with a personal injury lawyer. A skilled personal injury law firm can explain whether the offer is fair and what your next steps might be.
Remember that you generally have a limited time to file a lawsuit under New York’s statute of limitations (CPLR § 214), so it is important not to delay. When you partner with an experienced personal injury law firm quicky, you increase the chances that their investigation will yield substantial evidence to support your claim and that you’ll meet all relevant deadlines to protect your legal rights.
What Is a Reasonable Settlement Offer? A Few FAQs
How long does it take to get a personal injury settlement in New York?
The timeline varies greatly depending on the complexity of the case. A simple claim might resolve in months, while a complex case that goes to trial, like the ones mentioned above, may take several years. The goal is to secure a full and fair outcome, not just a fast one.
Do I have to pay taxes on my settlement money?
According to the Internal Revenue Service (IRS), compensation for physical injuries or sickness is generally not considered taxable income. However, portions of a settlement, such as compensation for lost wages or punitive damages, may be taxable. It is a good idea to discuss the specifics with knowledgeable legal and financial professionals.
What if the insurance company says their offer is final?
An insurer might claim an offer is “final” to pressure you into accepting it. This is often a negotiation tactic. An experienced attorney can assess the statement’s validity and advise you on how to proceed, which may involve filing a lawsuit to compel a fairer negotiation or take the case to a jury.
Why do I need a lawyer if the insurance company already made an offer?
An initial offer is a clear sign that the insurance company acknowledges some liability. However, as our recent verdicts show, that offer is often nowhere near what you are truly owed. Insurance companies negotiate settlements with their financial interests in mind, often undervaluing claims in the early stages. A dedicated lawyer works to prove the full value of your claim and fights to close the gap between the insurer’s low offer and the compensation you need.
How does a lawyer help if my case goes to trial?
If a fair settlement cannot be reached, a trial lawyer manages every aspect of the litigation process. This includes filing all necessary court documents, conducting discovery, hiring and preparing expert witnesses, and presenting your case persuasively to a judge and jury to fight for a verdict in your favor.
Your Future Deserves a Fair Fight: Your Claim Deserves a Reasonable Settlement
That settlement offer sitting on your table does not define your future… you do. The moments after an accident are complicated, from navigating the New York streets of Manhattan on crutches to worrying about your family’s future in your Queens home. You do not have to accept an offer that fails to honor the full extent of your losses.
The legal team at Hach & Rose, LLP, is ready to fight for you. We have the resources, the dedication, and the proven courtroom experience to challenge insurance companies and fight for the justice you deserve. Let us review their offer and discuss what your case is truly worth.
Contact us today for a free, no-obligation consultation by calling our personal injury attorneys at Hach & Rose, LLP, at (212) 779-0057, or complete our online contact form to begin securing your future.