When employees are injured or fall ill due to their job, workers’ compensation can act as an essential safety net. It ensures they receive financial support for medical expenses and lost wages. However, the process of securing a workers’ compensation settlement can be complex. This post aims to provide a clear understanding of how these settlements work, what to expect, and the role a workers comp lawyer can play in this process.
What Is A Workers Compensation Settlement
A workers’ compensation settlement is an agreement between the injured worker and the employer’s insurance company. This settlement is designed to cover the worker’s medical expenses, lost wages, and any other costs associated with the injury or illness. Settlements can be lump-sum payments or structured payments over time, depending on the agreement reached.
Types Of Workers Compensation Settlements
Full and final settlements and structured settlements are generally two types of workers’ compensation settlements that are available.
- Full and Final Settlements: In this type, the worker receives a one-time lump-sum payment. After receiving this payment, the worker typically relinquishes any future claims related to the injury. This type of settlement provides immediate financial relief but may not cover future medical expenses related to the injury.
- Structured Settlements: Here, the worker receives regular payments over a specified period. This option provides ongoing financial support and can be more beneficial for workers with long-term medical needs. However, it may not provide the immediate financial boost that a lump-sum payment offers.
Factors Influencing Settlement Amounts
Several factors influence the amount of a workers’ compensation settlement. These include:
- Severity of the Injury: More severe injuries usually result in higher settlement amounts due to increased medical expenses and longer recovery times.
- Future Medical Needs: If the injury requires ongoing medical treatment, this will be factored into the settlement amount.
- Lost Wages: Settlements typically cover lost wages, so the amount will depend on the worker’s salary and the length of time they are unable to work.
- Disability Ratings: If the worker is permanently or partially disabled, this will significantly impact the settlement amount.
The Settlement Process
The settlement process usually begins with the worker filing a claim with their employer’s insurance company. Once the claim is accepted, the insurance company may offer a settlement. It is crucial for workers to carefully review any settlement offers and consider consulting with a lawyer to ensure their rights are protected.
If the initial offer is not satisfactory, the worker can negotiate with the insurance company. This negotiation process can involve multiple rounds of offers and counteroffers. In some cases, if an agreement cannot be reached, the case may go to a workers’ compensation hearing, where a judge will decide the settlement amount.
When To Consider Legal Help
While some workers may choose to handle their claims independently, there are situations where legal help is beneficial. For instance, if the injury is severe, if the insurance company denies the claim, or if the settlement offer seems inadequate, consulting with a lawyer can provide clarity and support. Attorneys can attest to the importance of having knowledgeable legal assistance in these situations.
Final Thoughts On Workers Compensation Settlements
It is crucial for any injured worker seeking fair compensation to understand workers’ compensation settlements. By knowing the types of settlements available, the factors that influence settlement amounts, and the process involved, workers can better manage their claims. While some may manage their cases independently, others may benefit from the experience of a legal professional to secure the best possible outcome. Attorneys like those at Rispoli & Borneo P.C. will share that whether choosing a lump-sum payment or a structured settlement, the ultimate goal is to receive adequate compensation to cover medical expenses and lost wages, allowing the worker to focus on recovery and moving forward.