Workers’ compensation is an employer-funded insurance program that pays financial restitution to employees who are hurt or who develop an illness as a result of their job.
It is not uncommon for worker’s comp to make a settlement offer following your claim. When this happens, it may be tempting to accept the insurance company’s offer and put the matter behind you. After all, you have medical bills to pay and a household to run. However, it is important to understand that upon accepting the workers’ comp offer, you will be giving up any rights to pursue your employer for future complications relating to your injury or illness.
Making an informed decision
Making an informed decision regarding financial compensation may seem daunting. On one hand, you may be tempted to accept anything the insurance company is offering to avoid further pressure. On the other hand, your concerns for future treatment may be equally valid. As such, it is important that you take these factors into account before accepting a settlement:
The extent of your injury
If the workplace injury is only going to keep you out of work for a couple of weeks, then a settlement may allow you to offset any treatment costs and get back on your feet. In this case, you may as well take the settlement and focus on your recovery and future. However, if you are dealing with a potentially long-term injury that requires extensive treatment, then you might want to think twice before accepting a lump sum settlement.
The prognosis of your condition
If the injury was minor, with the likelihood of healing fast, then you may not risk much by accepting a lump-sum settlement. However, if there are uncertainties regarding your injury and recovery period, then you may need to consider a long-term payout arrangement.
A workplace accident can leave you with devastating injuries. Find out how you can reach a workers’ compensation settlement without jeopardizing your rights.