Understanding Workers’ Compensation Settlements: A Handy Guide

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An employee who has an injury at work may be entitled to workers’ compensation benefits from the employer’s insurance company. In response, the insurance policy pays for the expenses of medical care and lost wages due to a working injury. Workers’ compensation insurance is a crucial tool for assisting injured workers in recovering from their wounds and making it simpler for companies to offer protection and assistance to their staff during the healing process. It’s every worker’s responsibility to understand the complex, but crucial nature of workers’ compensation claims (and the lawsuits that they commonly lead to):

What Does the Settlement Process Look Like?

When a work-related accident occurs, a workers’ compensation claim is made to the insurance provider. If the claim is granted, the provider then suggests a specific sum as compensation. The decision to accept the offer and authorize payment thereafter rests with the employer and the employee involved in the claim. However, some workers decide to decline this offer. After all, an injured worker has the option to employ counsel and fight for a higher settlement amount rather than accepting the insurance company’s offer. Professional workers’ compensation lawyers work tirelessly to get the best possible payment for injured workers.

How Do Workers Comp Claim Trials Work?

A qualified judge will assess the case when a workers’ compensation claim is brought before the court, first determining if the claim is legitimate, and if it is, then suggesting a settlement sum that the court deems fair. Even freelance workers in many industries can benefit from workers’ comp laws. Once the court determines the settlement amount, the insurer and the claimant employee have the option of abiding by the ruling or appealing the entire settlement or just a portion of it. In most cases, a thirty-day window is given for an appeal. The settlement is finalized, and the carrier will disburse the agreed sum unless the insurance company successfully challenges the court’s ruling or accepts the suggested sum altogether. That being said, every trial works out differently, depending on the unique circumstances of the workers’ comp claim at hand. Additionally, not every state has the same workers’ comp laws. For this reason, a qualified workers’ comp lawyer can be an invaluable asset as you navigate the claims process in court.

How Can I Expect Payment from my Workers Comp Claim?

This is typically the very first question people ask lawyers when discussing what a workers’ compensation claim can do for them. After all, the workers need a financial safety net to help them stay afloat as they heal from their injuries. To put it simply, workers’ comp claims are almost always resolved in one of two ways: either as a lump-sum payment or a structured settlement payment.

When the matter is resolved in a lump sum, the employee signs a settlement agreement and receives a one-time payment from the employer or the insurance provider. For those that only expect to be out of work for a short period, this is often the most popular option. There are plenty of times when this lump-sum payment will allow workers to easily handle expenses, medical bills, and other hardships as they wait to go back to work.

On the other hand, the employee will get payments over a certain length of time under a structured settlement agreement. For those that expect to be out of work for a long period due to their injury, this agreement is often more appropriate. That being said, your lawyer can help you determine which of these two common options is actually the best option for your unique situation.

Will My Employer Play a Role in the Lawsuit?

The employer’s involvement in a workers’ compensation dispute between the employee and insurer will normally be minimal. The employee and the insurance provider that handles the employer’s workers’ compensation coverage will interact the most. Employers should take the initiative to encourage effective communication between the insurer and the employee and to keep themselves informed of the situation. The likelihood of a corporation being mentioned in the lawsuit decreases with increased employer involvement and vigilance during this process. Additionally, it’s a fantastic opportunity for workers to assist their injured coworkers. After all, this can make a big difference in the eyes of the general public.

Workers’ Comp Laws Protect Everyone

Thanks to workers’ comp laws, every worker in America has a safety net for when they’re unexpectedly injured at work. In the rare cases where employers try to prevent workers from getting their well-deserved compensation, a workers’ comp lawyer can enter into the fight, and ensure that the worker is properly taken care of.

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