If you’ve suffered an injury or illness at work, you may be entitled to workers’ compensation benefits through your employer’s insurance provider. Once you file a claim, you can either accept the insurance company’s offer and receive weekly installments or opt for a different payment arrangement. This may involve going to a hearing where a judge decides on the dispute or negotiating a settlement with the insurance company.
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What Are the Types of Workers’ Compensation Settlements?
If you choose to negotiate a settlement, there are two main methods for receiving your benefits:
- Lump Sum Settlement:
A one-time payment that provides the full agreed-upon amount upfront rather than receiving weekly installments. - Structured Settlement:
Payments are distributed over a specified period, providing financial stability with scheduled installments.
What Are the Advantages of Accepting a Settlement?
There are several potential benefits to accepting a workers’ compensation settlement:
- Avoid the Risks of Trial:
Going to trial can be unpredictable, and a judge may decide you’re owed less than what the insurance company offers. - Expedited Payment Options:
In some states, lump sum payments are not available after a trial. Instead, you may only receive weekly payments, even if awarded compensation. - Faster Resolution:
A settlement can save time by avoiding the lengthy and stressful process of hearings and appeals. - Financial Flexibility:
The insurance company may offer additional compensation in exchange for forfeiting future benefits, which can provide immediate financial relief.
What Are the Disadvantages of Accepting a Settlement?
While settlements can be beneficial, there are potential drawbacks:
- Risk to Future Medical Benefits:
Settling may require forfeiting your right to future medical expense coverage. If you anticipate needing costly treatments, such as surgeries, medication, or ongoing care, a settlement may not be in your best interest. - Financial Mismanagement:
A lump sum payment could be tempting to spend quickly, leaving you without the necessary funds to cover future expenses related to your injury or illness.
Should You Settle a Workers’ Compensation Claim?
Workers’ compensation settlements can offer significant advantages in the right circumstances. However, they are also complex and carry long-term implications. It’s crucial to carefully consider your current and future needs before making a decision.
Consulting an experienced workers’ compensation attorney can help you make the most informed choice. At E&L, LLP, our attorneys will guide you through every step of the process to ensure you receive the compensation you deserve.
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