Types of Workers Compensation Settlements
If you’ve been injured or become ill on the job, you may be eligible to collect workers’ compensation benefits from your employer’s insurance carrier. If so, you can either accept what the insurance company offers you and receive weekly installments or pursue an alternative payment setup. If you choose the latter, you can elect to go to a hearing and let a judge rule on the dispute or negotiate a settlement with the insurance company.
What Are the Types of Workers’ Compensation Settlements?
If you choose to negotiate a settlement, there are two primary methods for receiving benefits.
- Lump Sum: You can negotiate a settlement that will afford you a one-time transfer of money rather than weekly payments.
- Structured: You can negotiate a structured settlement that will provide payments over a period of time.
What Are the Potential Advantages of Accepting a Settlement?
There are several potential benefits to accepting a settlement:
- Going to trial is risky. The judge might decide that you’re owed less money than what the insurance company has offered to pay.
- Lump sum payments may be restricted. In some states, you can’t receive a lump sum payment following trial. Instead, you may be limited to receiving weekly payments.
- You might have to wait a while for your hearing. Agreeing to a settlement can save you time and help you avoid a stressful, lengthy process.
- You can get ahead financially. The insurance company may agree to pay you money in exchange for forfeiting future benefits you might never use.
What Are the Potential Disadvantages of Accepting a Settlement?
On the flip side, there are potential drawbacks to accepting a settlement, including:
- Future benefits could be compromised. It can be risky to forfeit your right to payments for future medical expenses in return for a lump sum. If you foresee needing expensive medication, surgery, doctor visits, and other medical treatments, it may not be in your interest to settle.
- You might run out of money quickly. You could be tempted to spend all your money from a lump sum payment right away, leaving you without future weekly payments for your disability.
Should You Settle a Workers’ Compensation Claim?
While in certain situations, workers’ compensation settlements have significant benefits, they can also be complex and have far-reaching consequences. Be sure to discuss your case with a Morgan & Morgan attorney to arrive at the best decision possible. Schedule a free case evaluation now.