The Truth About Personal Injury Settlements & Insurance in Buffalo 

What They Won’t Tell You

You’ve been injured, you’ve filed a claim, and maybe you’ve even won a settlement. But what comes next isn’t always clear—and unfortunately, it’s not always fair. Insurance companies don’t just hand over money and walk away. They look for ways to protect their profits, and that often means turning their attention back on you. It’s one more reason why you need personal injury attorneys who understand how to protect your financial future.

At Horn Wright, LLP, our personal injury attorneys work with clients in Buffalo whose injuries have forced them into complex legal and insurance situations. If you’re worried about your insurance dropping you, your benefits shrinking, or your settlement affecting your long-term finances, you’re not overthinking it. You’re asking the right questions—and we’re here to help you find the right answers.

Can Your Insurance Company Cut You Off After a Personal Injury Claim?

Unfortunately, yes. Insurance companies in Buffalo and across New York can and sometimes do terminate policies or refuse renewals after a claim. If they think you’re now a higher risk, they may look for reasons to distance themselves.

Auto, health, and even home insurers may try to:

• Reevaluate your risk classification and raise your premiums.
• Refuse to renew your policy at the end of its term.
• Send notice of non-renewal, which under New York Insurance Law § 3425 must be done in writing and within specific timeframes.

Even though they can’t cancel your policy mid-term without legal cause, they may become less cooperative when it's time to file future claims. That’s why having a legal team in Buffalo is so important—so you’re not left fighting them alone.

Will Your Life Insurance Pay Out If You Win a Settlement?

Winning a personal injury settlement doesn’t automatically cancel your life insurance, but it can affect how your policy is viewed. If your injury is serious or long-term, the insurer may:

• Reassess your eligibility if you try to increase coverage.
• Offer lower payouts on new policies.
• Use the settlement as a reason to deny certain benefits.

If you’re covered under a group plan through your employer in Buffalo, you’ll also want to check the fine print. Some policies include clauses that reduce death benefits based on prior injury settlements.

And here’s the tricky part: large settlements can impact estate planning. That’s where New York’s Estates, Powers and Trusts Law § 5-1.1-A becomes relevant, especially when structuring assets to support survivors.

We work closely with financial advisors and estate attorneys to make sure your settlement doesn't cause unintended consequences down the road.

Your Disability Benefits in Buffalo Could Be at Risk After a Lawsuit

If you're receiving disability benefits—whether from a private insurer or Social Security—your personal injury settlement might affect your eligibility. And unfortunately, most people don’t realize this until the checks stop coming.

The Harsh Reality of Private Disability Insurance vs. SSDI

Private disability insurance companies often include “offset clauses” in their policies. That means:

• If you win a personal injury settlement, your monthly disability benefit may be reduced.
• Some policies even require you to reimburse the insurer for benefits you’ve already received.

Meanwhile, Social Security Disability Insurance (SSDI) works differently. Settlements don’t usually affect SSDI, but they can affect Supplemental Security Income (SSI), which is need-based. Under New York Social Services Law § 366, changes in assets—including a lump sum settlement—can disqualify you from Medicaid or SSI if not handled properly.

This is where a skilled legal team steps in. Structuring your settlement through tools like special needs trusts or annuities may help protect your access to critical benefits.

How to Protect Your Settlement from Destroying Your Financial Future

Winning a settlement should bring relief—not more stress. But without the right planning, that payout could come back to haunt you. Buffalo residents dealing with life after a lawsuit need to think long-term.

Here’s how we help clients secure their financial future:

• Establishing structured settlements – Breaks your payout into installments, preserving eligibility for public benefits.
• Creating special needs trusts – Especially important for those receiving Medicaid, SSI, or other income-based benefits.
• Avoiding tax pitfalls – While most personal injury settlements are not taxable under IRS guidelines, certain portions—like punitive damages or interest—might be.
• Coordinating with estate planners – So that your settlement doesn’t disrupt inheritances or trigger unnecessary estate taxes.

Financial peace of mind is possible—but only if you take proactive steps after your case ends.

Your Buffalo Legal Team for Settlement and Insurance Disputes

Insurance companies won’t warn you about what’s at risk after a settlement—they’ll quietly let you make mistakes and then use those mistakes against you. At Horn Wright, LLP, our personal injury attorneys know how to protect Buffalo clients from post-settlement fallout.

You fought hard to win your case. Now let us help you keep what you’ve earned. If you’re ready to hire one of the best law firms in America, we’re ready to get to work.