Workers’ compensation holds employers responsible for injuries their employees sustain on the job. Payments help cover medical expenses, lost wages, pain and suffering, and other damages resulting from the injury.
Many workers’ comp cases end in a settlement. The way you receive payments varies depending on whether you accept a lump sum or a structured settlement. Here’s what to know about lump-sum settlements before you file your workers’ compensation claim.
Applying for Workers’ Comp
Before you file your claim, consider contacting a workers’ compensation lawyer who can help you gather the necessary documents and evidence to support your claim. Once you file, you must be prepared to negotiate a settlement with the insurance company. Your attorney can help determine if you’re being offered a fair amount. If not, you may need to file a lawsuit to obtain the compensation you deserve.
Qualifying for a Lump-Sum Settlement
To be eligible, your employer’s insurance company must first accept your worker’s compensation claim. Next, you need a medical evaluation. Your injuries must be permanent and disabling, preventing you from returning to work or performing your regular duties, for a lump-sum settlement to be possible.
Pros and Cons of Workers’ Compensation Lump-Sum Settlements
Lump-sum settlements typically benefit both the worker and the employer. Receiving a lump sum upfront helps cover medical bills, lost wages, and other expenses that have piled up. This type of settlement also protects the employer from future liability.
Still, there are some drawbacks to consider. For instance, the total payout may not be as high as a structured settlement, where you receive guaranteed payments over time. Workers who receive a lump sum may also waive their rights to future disability payments and other potential benefits associated with the injury.
Other Considerations
Here are some final thoughts as you consider your settlement offer:
- Think about the potential long-term effects of your injuries. If you require ongoing medical care or are unable to work, the settlement you receive must cover these future costs.
- There is no guarantee you will receive a lump-sum settlement, even if you qualify for one. It’s up to the insurance company to decide if your situation warrants this type of payout. Still, a lump-sum settlement is worth pursuing if you have a strong case.
- Make sure you’re comfortable with the terms of the settlement. It’s tough to make changes after you sign, so review the deal carefully with your lawyer.
- You may be required to pay taxes on your settlement, reducing the total amount you get to keep.
If you’re considering accepting a lump-sum settlement, speak with a workers’ compensation attorney before finalizing your decision. The team at Gelman Gelman Wiskow & McCarthy LLC would be honored to represent your case. We have over 70 years of experience as a workers’ comp lawyer in New Jersey, so we can help you recover every dollar you’re entitled to. Call us at 862-263-0770 or contact us online to schedule your free, one-hour consultation. A Spanish translator is available upon request.
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