After a car accident, slip & fall (premises liability) accident, or other type of personal injury case, you have the legal right to pursue compensation for your injuries and losses through the court system. As a practical matter though, there is usually an insurance policy in place designed to cover your losses. The insurance provider will usually prefer to pay you a settlement amount in return for your agreement not to pursue a lawsuit in court. It saves them the costs of defending the case in court. It's also usually beneficial to you, the injured party, because you don't have to wait for the court system to resolve your case, which can take many months or even years. Additionally, if you opt to take your case to trial – which you can at any time before accepting a settlement – you run the risk of getting nothing if you lose. Settlement is a compromise between you and the person liable for your 'damages'. See: Advantages of Settling Your Injury Lawsuit Out of Court