Disclaimer: This article is for general informational purposes only and is not legal advice. Laws change and every case is different. Consult a licensed Delaware attorney before making decisions about litigation or settlement.
Overview — responding when an insurer sends a final settlement offer after an injury
If an insurance company sends what it calls a “final offer” after you were injured, you have options. In Delaware you can accept the offer, reject it and continue negotiating, use alternative dispute resolution (mediation or arbitration) if available, or file a lawsuit. The right choice depends on the strength of your claim, your current and expected future medical needs, liens or subrogation issues, and legal deadlines. Below is a clear, step-by-step FAQ-style explanation of the process under Delaware law and practical steps to contest or respond to a final offer.
Step 1 — Read the offer and any enclosed release carefully
Insurance companies usually include a written release with a final offer. A signed release can bar you from pursuing the same claim later. Before you sign anything:
- Check whether the release is full (permanent) or limited.
- Note any deadlines for acceptance.
- Confirm what medical bills, future care, lost income, and non-economic damages (pain and suffering) the offer is intended to resolve.
Step 2 — Assemble your damages and supporting documents
To evaluate the offer and craft a response, collect:
- All medical records and bills related to the injury.
- Documentation of lost wages, lost earning capacity, and employment records.
- Evidence of pain and suffering (diary entries, statements from friends/family, photos).
- List of anticipated future medical needs, with cost estimates if possible.
- Information about any health insurer, Medicare, Medicaid, or lienholders who may assert subrogation or reimbursement rights.
Step 3 — Compare the offer to your full damages
Create a conservative estimate of your total damages (past and future economic losses plus non‑economic damages). Compare that number to the insurer’s offer. Consider:
- Whether the offer covers outstanding medical bills and anticipated future care.
- Whether the offer resolves or leaves open subrogation claims from insurers or government payors (Medicare/Medicaid).
- Your tolerance for risk and the costs of filing suit (filing fees, attorney costs, time to trial).
Step 4 — Respond in writing: accept, counter, or reject
If you decide not to accept, respond in writing before any stated deadline. Your response options:
- Counteroffer: Send a written counteroffer with the amount you will accept and the reasons (attach medical summaries and bills).
- Rejection with a demand: Reject the final offer and submit a formal demand letter laying out your damages and the basis for a higher settlement.
- Reserve rights: If you need more time, ask the insurer in writing for more time and explain why (e.g., pending medical tests).
Step 5 — Use negotiation tools and alternative dispute resolution
Negotiation can include phone calls, written correspondence, and mediation. Delaware courts and many insurers encourage mediation to avoid trial. Mediation can produce a faster, less costly resolution while letting you retain the option to litigate if mediation fails.
Check whether your policy or a pre-existing contract requires arbitration. If so, the arbitration forum and rules generally control how disputes get resolved.
Step 6 — When to hire a Delaware attorney
Hire an attorney if any of the following are true:
- The insurer’s offer is substantially lower than your verified damages.
- Future medical care or long-term disability is likely.
- There are complex coverage or liability issues (multiple at-fault parties, uninsured/underinsured motorist issues, workers’ compensation offsets).
- You suspect the insurer is acting in bad faith.
An attorney can prepare a stronger demand, handle lien and subrogation negotiations, file suit before deadlines, and represent you in mediation or trial.
Step 7 — Filing suit in Delaware if negotiations fail
If you and the insurer cannot agree, you may file a civil complaint and serve the insurer and any other defendants. Litigation steps include complaint, discovery (exchange of documents and depositions), motions, mediation or settlement conferences, and trial if necessary. Filing suit preserves your claim and forces the insurer to respond formally. Delaware court rules and local practice will dictate procedure.
For information about Delaware courts and civil procedure, see Delaware Code Title 10 (Courts and Judicial Procedure): https://delcode.delaware.gov/title10/.
Step 8 — Consider a claim for insurer bad faith (only in appropriate cases)
If the insurer denies a reasonable claim, refuses to investigate, or fails to engage in good-faith settlement negotiations, you may have extra-contractual remedies under Delaware law. These claims are fact‑specific and often require an experienced lawyer. See Delaware’s insurance laws for background: https://delcode.delaware.gov/title18/.
Practical timeline and deadlines
Keep in mind there are legal deadlines that can bar your claim if you wait too long. Delaware has statutes of limitations and procedural rules that control how long you have to file a lawsuit and how to preserve claims; an attorney can identify the exact deadline that applies to your case. For statutory material, consult Delaware Code Title 10 and Title 18 at the links above.
Helpful hints — quick checklist when contesting a “final” insurance offer
- Do not sign a full release or accept a payout until you understand whether it covers future care.
- Get all medical treatment documented; notes and objective findings strengthen your claim.
- Ask the insurer for a breakdown of how they calculated the offer.
- Preserve all communications with the insurer in writing and save voicemail records.
- Identify and budget for lienholders (health insurers, Medicare/Medicaid) and ask how they will be repaid from any settlement.
- Ask about structured settlements if you have large future care needs — they can provide guaranteed periodic payments.
- If you suspect bad faith, document unreasonable delays and inconsistent statements by the insurer and consult counsel promptly.
- Remember that rejecting a “final” offer may require you to litigate — weigh time, cost, and stress against the monetary gap.
If you want help finding a lawyer in Delaware who handles injury claims, consider contacting the Delaware State Bar Association or using a local attorney directory. Speaking with a lawyer for an initial case evaluation can clarify whether the insurer’s final offer is reasonable in your situation.