Should You Accept Your Workers’ Comp Settlement?

A workers’ compensation settlement typically includes a lump-sum payment or structured payout plan. This is offered in exchange for releasing the insurance company from any further obligations related to your workplace injury or illness. You may receive such a settlement offer from your workers’ compensation adjuster while recovering. But should you immediately accept your workers’ comp settlement? You will want to ensure it covers expenses such as medical bills, lost wages, rehabilitation, and (if applicable) compensation for long-term disability.

If you’re eager to put the ordeal of the workers’ comp claim process behind you, a settlement offer will likely be tempting. But it’s important to approach the settlement with a full understanding of everything it entails. Whether or not it’s wise to accept your adjuster’s offer to settle will depend not only on the amount of money, but several other significant factors.

Factors to Consider

• Your Injury — Depending on the severity of your injury or illness, you may require extensive treatment. In turn, the longevity of your impairment will determine the length of time for your rehabilitation. You will want your settlement to account for not just the immediate costs, but for future costs as well. Consult a doctor to receive a prognosis for your expected recovery time and any long-term effects of your ailment.
• Your Finances — A quicker settlement could be preferable to a potentially better one later, depending on your financial situation. How likely waiting will lead to a higher payout can depend on a variety of things. It is best to consult with a workers’ compensation attorney to figure out just how fair your settlement offer is.
• The Insurance Company — How well has your insurance company handled your workers’ comp claim so far? If they’ve been cooperative, chances are better that the settlement is generally fair. But if they’ve been difficult to work with or ambiguous in their response to concerns, their offer may be shortchanging you in hidden ways. An attorney can help ensure the offer is properly valued, and that you’re not waiving any critical rights.

Pros of Accepting a Workers’ Comp Settlement

• Closure — Accepting a settlement can allow you to move on and avoid the lengthy struggles of dealing with a legal case. You won’t have to worry about ongoing claims or their chance of denial anymore.
• Financial Relief — A lump-sum payment could provide immediate cash. If medical bills and other financial burdens resulting from your impairment have piled up, a quick settlement may be just what you need.
• Financial Control — Depending on the settlement, you may have the flexibility to determine how to spend the money for your recovery and any other needs. A lump-sum payment can settle matters more quickly and efficiently than smaller regular payments spread across a long period of time.

Cons of Accepting a Workers’ Comp Settlement

• Losing Future Benefits — Typically agreeing to a settlement offer means forfeiting the ability to seek additional compensation for any future expenses. You may end up on your own financially if your impairment requires further treatment in the months or years to come.
• Complicated Terms — Settlements often have stipulations that limit your ability to pursue any further legal action related to your workplace injury or illness. If your ailment returns, worsens, or leads to new complications, the settlement might not be able to cover the extra costs.
• Underpayment — The insurance company’s initial offer may be a “lowball” one that won’t reflect the full scope of your financial needs. This is sometimes especially so for cases involving disabilities or impairments requiring long-term care.

Seek a Professional Opinion

Sometimes accepting a settlement is the best decision, particularly when it aligns with your medical and financial needs. But even if the settlement appears reasonable, it is worth seeking a professional opinion before making your decision. If you accept a settlement, you likely won’t be able to receive further compensation for potential related expenses down the road. Along with a doctor’s medical advice regarding what future care you might need, a lawyer’s legal advice will go a long way for ensuring your best-possible recovery. A Rose Legal workers’ comp attorney can evaluate the offer’s terms carefully, assess your needs, and negotiate for a fair settlement on your behalf.