Workers' compensation insurance presents hurt workers with a valuable resource. If you have been hurt as a result of your job, you can expect an array of benefits like free medical care and a partial salary to stay home. Unfortunately, some injuries don't heal completely, resulting in permanent disabilities. When that happens, you can expect a settlement to be forthcoming from your employer's insurer. It's vital that permanently disabled workers not make mistakes when they agree to a settlement, so read on to find out more.
You May Be Offered a Premature Settlement
More and more often, workers are experiencing preemptive settlement offers. This means the offer comes very soon after the injury occurs. Waiting, in this case, is wise. You may have no way of knowing the full extent of your injuries until some time has passed. As long as you are able, stay home and make do with the partial salary rather than accept a premature settlement offer. At some point, you will undergo an independent medical examination that will determine whether or not you are at maximum medical improvement. That means your injury has reached a plateau and is not expected to improve further. If you disagree with this assessment, speak to a workers' comp lawyer who can arrange for you to have another exam completed by a doctor of your choosing. It's vital that you know what to expect with your injury in the future before you sign away your rights to compensation.
How Much Should You Expect in a Settlement?
There are many variables that go into a settlement. The biggest factor might be your former salary. Another common factor considered by insurers is your age, which takes into account how many more years you might have worked if not for the injury. Other factors include:
- Your education level
- Other workers' comp settlements in your local area
- Your degree of disability. For example, you might 50% disabled vs. 95% disabled
Settlements: Lump Sum or Structured?
You may be offered a choice in the type of settlement. A lump-sum settlement allows you to be paid the agreed-upon sum all at once. This frees you to make large purchases and investments. You might, however, be paid more money if you agree to accept a structured settlement. This means you are paid a fixed sum on a regular basis. Insurers prefer this type of system since it spreads out the financial burden. The total amount you get may be increased if you agree to accept a structured settlement.
Don't enter into negotiations with an insurer without help. Speak to a workers' compensation attorney in your area if you anticipate a settlement offer or if you have any problems with your claim.
