Without prejudice

Without prejudice is a label put on genuine settlement discussions so that what is said or offered cannot later be used as an admission if the case goes to court.

It lets both sides negotiate openly, since an insurer’s offer is not proof that the claim was worth that much. The protection generally applies only to real attempts to settle, not to every letter that carries the label.

When you receive a settlement offer, this term tells you it is a negotiating position, not an admission of what your claim is worth.

Reviewing a settlement offer explains how to weigh such an offer. An independent lawyer can take over the negotiation once an offer arrives.