What is a Lump Sum Settlement?
Have you been offered a lump sum settlement as part of your workers’ compensation claim? Deciding whether to accept the lump-sum payment is an important decision that shouldn’t be taken lightly. If you accept a lump sum from an insurance company, you will receive a single payment for your injuries and you no longer have to go through the workers’ compensation process.
How Is a Lump Sum Payment Determined?
Many claims in the workers’ compensation system result in lump sum settlements. In fact, any time that a claim enters litigation, if it is not fruitless, a mandatory mediation with a different workers’ compensation judge will be scheduled. A mediation is an informal, off-the-record process, during which time the judge attempts to broker a fair and reasonable compromise, or settlement between the parties.
The Judge Takes Several Things Into Consideration:
- Can the employee return to work?
- Did the injury leave the worker permanently disabled?
- Did the injury, without a doubt, happen at work?
If a settlement is reached, in exchange for the payment of a lump sum, the worker releases the employer from any further liability relating to the wage loss and/or medical aspects of their claim. This gives both parties closure and allows the worker to move on to the next phase of their life, without the insurance company looking over their shoulder and watching their every move.
Is a Lump Sum Payment Right for You?
Deciding whether a lump sum payment is right for you depends on the severity of your injuries and the amount being offered. It is best to wait until your doctor has fully determined your condition will not improve. Settling your case beforehand is a bad idea as the insurance company’s lump sum offer may not be enough to treat your injuries if your condition worsens.
The workers’ compensation system in our state is very complicated, and insurance companies bank on the fact that injured workers will take missteps along the way. Don’t get caught taking a lump sum settlement now that could mean a huge loss down the road.
If you or someone you know has been hurt on the job, call one of our experienced workers’ compensation attorneys. We will help walk you through the process and help you get the workers’ comp benefits and/or lump sum settlement you deserve.
