Many claimants want to put their personal injury cases behind them as soon as possible. Unfortunately, some move to settle with an insurance company quickly but end up with a settlement that doesn’t cover their needs. Once you settle, several steps must occur before you receive your payout and can begin paying your medical bills and handling other expenses. Knowing what to do and what to expect will make this process easier.
When you work with a lawyer from Shulman & Hill, we manage all aspects of your case. This includes preparing you for the steps that occur after you reach a settlement with the insurance company. Call us to learn more: (212) 221-100.
The Work is Not Over When You Reach a Settlement With the Insurer
While it is undoubtedly a good sign and progress in your case, negotiating a settlement with the insurance company is not the last step in recovering compensation. You must navigate several more steps before receiving a check. Here’s what happens when you reach a settlement.
Deciding on Payment Options
After reaching a settlement in your personal injury claim, you may have two ways to receive the funds: a lump sum or a structured settlement.
- Lump sum: This upfront payment option pays out the entire settlement amount at once. It is beneficial if you have significant debt or expenses to cover or want to invest. While you have the flexibility to pay off bills and use the funds as you wish, you must be careful to manage the money responsibly.
- Structured settlement: Unlike a lump sum, structured settlements involve periodic payouts over time. Smaller payments can help you manage the funds more wisely and have consistent income from the settlement. However, this option is less flexible, as it is very difficult to change structured settlement terms.
If you’re unsure which payment option is right for your settlement, work with an experienced New York personal injury attorney. They can evaluate your needs, provide more details about each option, and secure fair terms for your payout. You must decide how you want your settlement paid before finalizing the process and signing a release.
Signing the Release
In exchange for your settlement, the insurance company will expect you to sign a release. This legal document will state that you are releasing the at-fault party and their insurer from any further liability in the case. This means you cannot claim additional compensation beyond this settlement, including taking the case to trial. Before signing on the dotted line, some claimants work with an attorney who can first assess their losses. This ensures they know the value of their claim before they attempt to settle with an insurer.
You should discuss the contents of the release and the settlement with an attorney if you handled the negotiations on your own. If you worked with our team, we can review the release with you. We may even negotiate with the insurer or defendant’s attorney about the clauses they include.
Waiting for the Check
When you sign the release, the insurance company will not cut you a check immediately. However, once they receive all the paperwork, they generally have up to 21 days to pay you, according to the New York State Department of Financial Services.
If you work with an attorney, the insurance company will send it to the law firm. The firm will deposit it into escrow temporarily until it clears.
Paying Liens or Disbursing Payments
Once the settlement check clears, you will likely have financial obligations, such as liens, to meet before the money can be released to you. A lien is a legal claim giving a third party the right to collect payment from your settlement for pending bills.
Common liens in personal injury cases include medical liens, which give doctors, hospitals, Medicare and Medicaid agencies, or other healthcare providers the right to recover costs for their services from your settlement. You may also have a workers’ compensation lien. Addressing liens is crucial before you can receive your settlement and move forward.
If your lawyer received your check, they will use the funds to cover any liens against you. They will also deduct the attorney’s fees before disbursing the money to you. However, you must manage this payment process independently if the settlement check was sent to you directly.
Settlement Timeline Expectations in New York
After a personal injury settlement is reached, New York law requires prompt payment, giving the insurance company 21 days to pay all sums due to you. Typically, this means you’ll receive your check within three to six weeks. However, different rules may apply if the settling defendant is:
- A municipality
- A public corporation
- New York State
- An officer or employee of the state
- A public benefit corporation
If you brought your claim against any of these entities, the settlement must be paid within 90 days after you sign the release or after the comptroller determines all required documents are received. In these cases, you can expect a longer wait to receive your settlement funds.
Additionally, the 21-day settlement check timeline does not apply to wrongful death claims. Consult with a wrongful death lawyer in New York for more details on how long it takes to get your insurance settlement. An attorney can also help if a fair settlement is not reached and you need to take the next step in the legal process.
What Happens If the Check Is Delayed?
A delayed settlement check can cause financial and emotional hardships for victims and their families depending on those funds. If the insurance company fails to pay the settlement within 21 days, you can work with a personal injury lawyer to escalate the matter.
For private insurance companies, your attorney can file a complaint with the New York State Department of Financial Services or a motion to enforce the settlement. For public entities, such as municipalities, legal enforcement is necessary to reach a resolution when a settlement payment is delayed.
How To Track Settlement Progress
Even after you reach an agreement with the insurance company, it’s still important to track what happens after the settlement. Stay on top of payment progress and identify delays or issues as soon as they happen. This will help you receive your settlement funds as soon as possible.
To avoid delays, confirm with your attorney or settlement agent that all the necessary documents and other requirements are submitted to the insurance company. While you can expect updates on the status of your settlement check, you should also communicate regularly with your legal representative to stay informed.
Our Attorneys Will Manage This Process for You
When representing a personal injury victim in New York, we handle all aspects of their case. This may include investigating what happened, negotiating with the insurer, filing a lawsuit, and taking the case to trial. It also includes the steps necessary after we reach a settlement or win a verdict.
Agreeing to an insurance settlement strips you of the right to pursue additional compensation in the case. Because getting the money you need is vital to your financial health, you want to have a knowledgeable personal injury lawyer on your side to advise you. Let our team review your case and explain our services for free today.
Shulman & Hill Protects Clients’ Rights During Insurance Negotiations
Shulman & Hill attorneys make every case we handle personal to us. We want to ensure you have the strongest case possible and will pursue compensation on your behalf. This approach has secured more than $500 million and made us New York’s premier personal injury law firm.
Our New York personal injury lawyers take on cases regardless of their difficulty or complexity. We know what it takes to build a solid case and secure compensation for our clients. We do not believe accident victims should pay for their care out of their pockets. We are ready to work with you to get justice and hold the at-fault party accountable in your case.
Discuss Your Options for an Insurance Settlement With Our Team Today
Shulman & Hill offers free case reviews for victims of personal injury incidents in New York City and statewide. We represent those hurt by someone else’s carelessness and fight for fair compensation based on their case facts. We want to do the same for you and walk you through what happens after settling with the insurance company.
Call (212) 221-1000 today to learn more about our services or schedule a free consultation.
