Workers compensation settlement options explained

When you are injured or hurt in your line of duty, you are entitled to compensation either by the insurance company or your company. How much the settlement is, how long it will be paid, and what you must give up in exchange for the settlement is determined by the agreement between you and your employer or the insurance company. Here are some insights.

Types of workers compensation

There are two settlement options that every employer is entitled to award an injured employee: a lump sum settlement or a structured settlement. Lump sum settlement basically implies that your employer pays you a huge sum of money in one installment and in exchange you give up your rights to ever sue the company as long as you live. Structured settlement on the other hand stipulates a fixed amount of money that you can be paid weekly, monthly or annually for the rest of your life or for a stipulated time period. In structured settlement option, if you pass on, your dependents continue receiving the money.

Which is the best option for you?

Determining what is the best option between a lump sum payment and continuous partial payments depends on factors such as:

Permanent disability- In this case, you will never work again for the rest of your life. The settlement figure should be big enough to comfortably sustain you and your dependents for the rest of your life. If you feel that the company proposed an amount that is lower than what you feel you deserve, don’t sign the agreement. Hire an experienced worker’s compensation attorney in Los Angeles like the ones at Dini Law and file a petition in a court of law. Most companies don’t want to end up in such scenarios; hence they would rather increase the settlement amount and avoid dealing with the law. The best option in this case is the lump sum settlement.

Temporary total disability- In this case, the injury lead to a partial disability and you might be able to work after sometime. Most employers offer structured settlement or what they refer to as time loss compensation. The decision on whether to accept or reject this should be based on existing labor laws in your locality. If the partial payment amount is quite reasonable, it is best to take it since a judge can rule in the company’s favor and you might end up with nothing or a lesser amount. Also, any unreimbursed medical expenses should be paid by the company before the settlement is finalized.

Hence, after reading this article on workers compensation settlement options explained, you have no reason to suffer any form of injustice in your workplace.