What To Know About The Pros And Cons Of Workers Compensation Settlements
Posted: Oct 18, 2014
Workers compensation is an entire system of rules and statutes that require an employer to pay or provide insurance to pay an employee compensation equivalent to the lost wages and medical expenses they incur after they become injured on the job.
The Goal of Workers Compensation
As mentioned, laws are governed by rules and statutes enforced by every state. Therefore, laws do vary on a state by state basis. However, the basics remain the same.
Employees that get injured on the job have the right to claim benefits when they suffer injuries or illnesses gained during the course of their employment.
The goal behind workers compensation is that the benefits award the employee with the wages they could have made if they weren't incapacitated. The settlement also ensures that the employee is properly reimbursed for expenses that they incurred for having to pay medical expenses.
Accepting a workers compensation settlement sounds simple. However, it's not as simple as it seems. In some instances, accepting a fairly hefty workers compensation settlement may cause your other government benefits to stop. Let's learn why in this article.
Why You Should Accept A Settlement
When confronted with accepting a settlement, many injured workers will undoubtedly take the settlement. However, some might hold out on their settlement until they see what's offered to them first.
You might not accept your settlement if:
You're able to wait and see what your insurance company offers for workers compensation benefits, while also accepting weekly permanent disability payments for as long as your insurance company has said it will pay.
You and your lawyer are able to proceed to a trial with your insurance company to see if you're able to win better weekly payments or a much higher lump sum settlement.
Accepting the workers compensation settlement upfront, however, is the best way to avoid having a prolonged trial or reduced workers compensation settlements altogether.
Why You Shouldn't Accept A Settlement
There are some instances where accepting a workers’ compensation settlement might not be a good idea. This usually occurs in instances where you're not able keep receiving other weekly or monthly payments from your government benefits.
In many states, you'll have to give up your right to receive future medical treatment for your injury if you accept a settlement. So, if you do need additional medical treatment and medication for your injury, you probably shouldn't accept a worker’s compensation settlement. You wouldn't want to waive your right to those benefits.
Some might not want to accept certain workers compensation settlements for personal reasons. Lump sum workers compensation settlements, for example, might be too 'comfortable' for people who don't want to become tempted to spend their money. In that case, weekly workers compensation payments are a better option for them.
As you can see, there are various pros and cons behind workers compensation settlements. Due to that, people seeking workers compensation should get legal aid in order to receive a fair settlement for their workplace injury. As long as you have a good workers compensation lawyer on your side, it's not too difficult to eventually settle your workers compensation case.
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