When Should You Take A Lump Sum Settlement In A Workers’ Comp Case?

When going through your workers’ compensation case, your employer’s insurance company might offer a lump sum payment or waiver agreement to end the case quickly. While it might seem tempting to accept the offer, there are a few things to consider before making a final decision. Read on and discover how lump sum settlements impact your case and when you should consider accepting this offer.

How Do Lump Sum Payments Work In Workers’ Comp Cases?

In short, lump sum settlements are one-time payments insurance companies make to an injured worker to cover damages. Unlike structured payment plans or permanent disability payments, lump sum payments let you access funds as soon as the case is over.

For example, if you have a $10,000 settlement, you’ll get this entire amount in your bank account after you and your employer finish negotiating. This money could help you cover any medical costs, replace lost wages, or virtually anything else you need it for.

When Should You Accept A Lump Sum Payment?

Getting a large amount of money at once like this is a rare financial opportunity for most beneficiaries. Consider taking this route if:

• You don’t see yourself getting more treatment
• You need the money right away and want to end the case as soon as possible
• You want the certainty of getting your compensation at once instead of waiting
• You and your lawyer believe the settlement covers your damages

In most cases, the first settlement will generally be lower than your claim’s actual value. Don’t feel pressured to accept something immediately. Instead, speak to your lawyer and calculate an appropriate amount of compensation you’re willing to take. This way, you’ll know how much you need and negotiate a better settlement if you need to.

When Lump Sum Payments Aren’t A Good Option

Now that you know when to accept a settlement, there are a few cases where it may not be the best decision. Opt for further negotiation or other settlement options if:

• You have severe injuries that might require long-term medical care
• You’re unsure about potential medical expenses
• You don’t want a large sum of money and prefer to receive it in installments
• Your doctor notified you about potential future medical costs

What Determines The Payment’s Amount?

While the average workers’ comp settlement nationwide is $41,757, every case’s details are different. However, most claimants with successful cases could expect at least a couple thousand or more. Your employer’s insurance company will determine how much your case is worth based on factors like injuries, medical treatments, and lost wages.

Our Attorneys Are Here To Help

If a company offers you a lump sum payment, don’t accept the first offer and always have an experienced attorney look it over. Our New York workers’ compensation lawyers will calculate a fair settlement and negotiate with insurance companies to ensure you get the compensation you deserve. If you have any questions about your case, please contact us online or call us at 877-693-2529 today.