Options and Considerations in a Workers’ Comp Settlement
A workers’ compensation settlement is an agreement between an injured worker and their employer’s workers’ compensation insurance carrier to resolve a workers’ compensation claim. In a settlement, the employer agrees to pay the worker a lump sum of money or a structured settlement in exchange for the worker’s release of their rights to sue the employer for their work-related injury or illness.
Why Would an Injured Worker Agree to a Settlement?
There are several reasons why an injured worker might agree to a settlement. These reasons include:
- To avoid the cost and uncertainty of litigation. Workers’ compensation cases can be complex and time-consuming, and there is no guarantee that the worker will win if they go to court. A settlement can provide the worker with a guaranteed amount of money without the risk of going to court.
- To get money quickly. If an injured worker is unable to work, they may need money quickly to pay for their bills and living expenses. A settlement can provide the worker with money much sooner than if they went to court.
- To avoid further conflict with their employer. Some workers may prefer to settle their claim and move on rather than continue to have a contentious relationship with their employer.
What Are the Different Types of Workers’ Compensation Settlements?
There are two main types of workers’ compensation settlements:
- Lump sum settlements: In a lump sum settlement, the worker receives a one-time payment of money. This type of settlement is typically used for cases where the worker’s injury or illness is relatively minor and there is a clear diagnosis and prognosis.
- Structured settlements: In a structured settlement, the worker receives their benefits in a series of payments over time. This type of settlement is typically used for cases where the worker’s injury or illness is more severe and there is a risk of future medical expenses or lost wages.
If you have any questions about workers’ compensation settlements, you should consult with an attorney.
This article is for general informational purposes only and is not legal advice. Contact us today to discuss your specific situation.