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 more openly, since an insurer’s offer to settle for a certain figure is not treated as proof that the full claim was actually worth that much. This protection generally only applies to real attempts to settle, not to every letter that happens to carry the label.

Understanding this term matters when you receive a settlement offer, so you know it reflects a negotiating position rather than a formal admission of what your claim is worth.

Reviewing a settlement offer explains how to weigh an offer made on this basis.