Can An Insurance Company Withdraw A Settlement Offer?

Insurance companies in Illinois workers’ compensation cases are not required to make a settlement offer. When they do, it’s often to try and close out your case before it’s too soon. That happened three times over the last month to people I talked to.

The most recent person worked for a big box retailer and had a major knee injury. Her doctor was recommending a knee replacement, but the insurance company didn’t want to pay for it. Instead they told her they would give her $50,000 to close her case. They also said she had ten days to accept it or the offer would be withdrawn.

She called me kind of freaking out. That money would really help her, but she can’t work right now and doesn’t have health insurance. She didn’t know what to do. There’s a lot to unpack here.

Can an insurance company withdraw a settlement offer in an Illinois workers’ compensation case?

The short answer is sure they could but it’s not really something that actually happens. Usually what it is is a negotiating tactic to pressure someone to settle. Do you think they would pressure you if it was in your best interests? Of course not.

So while it could be withdrawn, the reality is that I’ve never in 28 years seen it actually happen. I would bet a lot of money that if a week after some made up deadline you asked for the settlement that it would magically re-appear.

The bigger issue is why are they offering a settlement at all?

In this case, she can’t even work and is receiving weekly TTD payments. She also needs a knee replacement. That surgery alone would cost potentially double what they are offering her. The insurance company wants to settle to save themselves money.

And if she does have the surgery, it likely makes her case worth even more in the long run. More importantly (never have surgery just to get a bigger settlement) it seems to be the best thing for her health.

What is your case worth?

Beyond all of that, we can get her a settlement when she’s all better and it’s time to settle. If it turns out that she can’t get back to work due to the major knee injury, her case might actually be worth many hundreds of thousands of dollars. There is no reason to settle for $50,000 today when 18 months from now you might be able to get a settlement for $400,000 (or more). And that doesn’t include payments for future medical benefits.

I’d always be wary of anything the insurance company tells you. I’ve actually helped a lot of these adjusters with their cases when they get hurt on the job and they all agree that the insurance company isn’t there to help or protect you. In fact it’s usually their biggest worry for their own case.

So don’t freak out about a settlement deadline. The bigger issue is what is the best thing to do for your case. Call us any time at 312-346-5578 to speak with a lawyer for free and get an opinion on what you should do.