When Will Workers’ Comp Offer A Settlement?

Posted in Workers' Compensation on February 14, 2025

Workers’ compensation is a rather mentally irritating and confusing process, especially when one awaits a settlement offer. When Will Workers’ Comp Offer A Settlement? This question runs in the minds of injured workers in Phoenix, AZ, since they need compensation to cover their medical bills and other lost wages. How long it takes to settle a workers’ compensation case will depend on your situation, specifically your injuries and whether you can return to work.

Below, we will guide you through many steps commonly involved in workers’ compensation settlements, identify common case scenarios that most frequently settle, and provide many supplementary resources as you confidently begin taking action forward. If you need a Phoenix workers’ comp lawyer, Crossman Law Offices can help you.

How Fast Can a Workers’ Compensation Settlement Be Offered? 

The speed of receiving a settlement offer depends on multiple factors, such as the complexity of your case and whether your injuries have stabilized. 

Typically, you might receive a settlement offer only after your medical condition has reached maximum medical improvement (MMI)—meaning it’s not expected to improve further even with treatment. At this stage, both parties have a clearer understanding of your medical needs and future expenses, enabling the insurance company to evaluate the claim fairly. 

In some cases, the dispute will be settled within weeks. If there is disagreement about the validity of the claim or the seriousness of the injury, it may take a few months or more.

A Step-by-Step Guide to the Workers’ Comp Settlement Process 

Step 1: Reporting Your Workers Comp Claim

If you sustain an injury at work, you should immediately report it to your employer. Timely reporting of injuries can prevent complications arising from unnecessary delays in processing your claim. The employer shall supply a workers’ compensation claim form to start the review process with their insurers. Moreover, under this section, you should give clear information about the injury from a personal point of view that will render unnecessary delays or denial of the claim.

Step 2: Obtaining Medical Treatment

Get immediate medical attention for your health and with a view of corroborating your claim. Medical records containing the diagnosis and treatment will be essential pieces of evidence. Follow the prescribed medicines and attend all appointments; failure may weaken your claim. Keep a log of all treatments, test results, and medical opinions that will help present your case in court.

Step 3: The Maximum Medical Improvement (MMI) Stage

Once your treatment is concluded, your doctor will ascertain whether you have reached Maximum Medical Improvement (MMI). This means it is believed no further recovery can be expected. At this stage, they will assess any permanent disability or limitation arising from the injury. This evaluation is vital for determining the extent of the compensation due, including care in the future or retraining to acquire a new job.

Step 4: Reviewing the Settlement Offer

Once you hit the MMI mark, your insurance carrier will set your case based on an offer reflecting recouped medical expenses, lost wages, and some disability due to your injury. In many instances, the initial offers are always at the lowest the insurance industry could, perhaps, come up with. 

Step 5: Negotiating Your Settlement

You are not necessarily obligated to take the first settlement offer made to you. The insurance company often offers without factoring in long-term costs by lowballing the first offers. The attorney can assist in negotiating for proper compensation, gathering further evidence, or defending your rights should your claim be disputed.

Step 6: Approval of the Settlement

It has also been held that all workers’ compensation settlements must be reviewed for approval by the Industrial Commission to ensure that a settlement will be fair, equitable, and within the letter and spirit of the law so as to protect the rights of the parties under the Arizona Revised Statutes § 23-941.03.

Step 7: Receiving Your Settlement Payment

Upon approval, you will be paid in a lump sum or structured installments. A lump sum entails full access to the cash immediately, whereas structured payments offer some certainty over the period. Understand the terms to plan for and manage your settlement effectively.

Arizona Workers’ Compensation Settlements 

Arizona law permits settlements involving “undisputed entitlement to supportive medical maintenance benefits,” as Section 23-941.03 outlines. These settlements are typically negotiated after the temporary disability period ends and the worker’s medical condition reaches a stable state, also known as maximum medical improvement (MMI). At this stage, the extent of the worker’s permanent impairment is determined, which can significantly impact the settlement amount. 

Workers in Arizona have the option to waive future medical benefits through a final settlement. While this can provide an immediate financial benefit, it’s crucial to carefully consider the long-term consequences, as waiving future medical coverage could leave you responsible for out-of-pocket costs if your condition worsens. Any settlement should always be approached with a complete understanding of your rights and potential risks.

It is highly recommended that you seek the advice of a Phoenix Workers Comp Lawyer. A reasonable attorney will analyze your situation’s details, negotiate on your behalf, and see that you are educated on all possible scenarios before you sign your name to the agreement to receive full compensation. So, make sure you are making the right decisions today that will never fail to protect your future.

When Can I Expect My Workers’ Comp Settlement Payment? 

Once an agreement has been reached, most payments usually go pretty fast. However, this may change due to the insurance company, the arrangement type, and the actual provisions in your agreement. In most cases, lump sum settlements are usually paid out faster and reach the account in a couple of weeks after approval. On the other hand, structured settlements will usually take longer to pay out, and this is generally spread over several months, at times even years, depending on the agreed-upon timing.

Also, sometimes delays in the process could be caused by administrative processes within the insurance company, like verification of all the required documents or internal approvals. Your attorney can communicate with the insurance company directly and, where necessary, follow up to confirm that a payment is made on time and in full accordance with your settlement terms. This proactive approach will give one peace of mind and avoid unnecessary delays.

Which Workers’ Compensation Cases Typically Settle? 

Most injuries that are pursued will result in a settlement. Some parameters still must be satisfied for this to occur. These factors include:

• The injury is provable and substantiated with credible medical records, such as comprehensive medical reports or evaluations from competent medical practitioners.
• The worker’s medical condition has reached a point of stability, and no further medical improvement is anticipated. This helps ascertain the full extent of the injury and the associated costs.
• There is no real contestation as to the claim’s validity, per se, like the nature and extent of the injury arising out of a claimant’s employment and damage. Moving away from such disputed situations requires clear communication and proper documentation.
• It would not want to incur the costs and time-consuming litigation process. Trials take time and are costly for all parties concerned; therefore, settlement is always an attractive option.

Settlement can promptly provide injured workers with compensation to meet immediate needs, such as doctor’s bills or lost wages. It also dramatically reduces the pressure and uncertainty for both parties from a long, drawn-out court process. Though not all cases are suited for settlement, knowing these criteria will enable workers and employers to deal better with the process.

Workers’ Compensation Benefits in Arizona 

Under Arizona law, injured workers have medical coverage, temporary disability, and permanent disability benefits. The Arizona Industrial Commission has provided a right to medical treatment without any cost for job-related injuries, and compensation is payable for the loss of wages while recovering.

Types of Common Benefits 

Medical Expenses 

This covers treatments such as hospital confinement, surgery, doctor visits, rehabilitation programs, and the like that are necessary for your recovery and management of your medical condition.

Temporary Disability Payments 

It replaces part of your income when you cannot work because of an injury or illness; it covers the day-to-day expenses during your recovery.

Permanent Disability Payments 

It offers financial compensation for long-term or lifelong physical impairments that limit one’s ability to work or perform daily tasks, helping one adjust to one’s new circumstances.

Take Action Today: Speak with a Workers’ Comp Specialist 

Expert knowledge will help navigate through workers’ compensation claims and settlements. Crossman Law Offices guides injured workers through the claim process in Phoenix, AZ. Whether you’re waiting for a settlement offer or, if need be, for you to negotiate a fair agreement, our team of experts will guide you through it. Don’t leave your future to chance. Contact us at  602-248-0380  or visit our office at 4545 East Shea Boulevard, Suite 164, Phoenix, AZ 85028, to schedule your free consultation today and take control of your workers’ comp case.