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.
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.
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.
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.
Here are some final thoughts as you consider your settlement offer:
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.