If you have ever filed or are currently filing a workers’ compensation claim, you may have faced a Compromise and Release (C&R) agreement. This settlement option can dramatically change the course of your case, offering a lump sum payment instead of ongoing benefits. But is it the right choice for you?
What are the benefits?
A C&R agreement can offer three main advantages:
- You receive all your compensation at once: This can be helpful if you have immediate financial needs or prefer to manage a larger sum of money yourself.
- This settlement ends your case permanently: This can provide peace of mind and allow you to focus on your recovery without the stress of an ongoing legal process.
- You have full control over how to use the settlement money: Whether it’s for medical expenses, retraining for a new career or other personal needs, you can decide how best to allocate the funds.
These benefits can provide a sense of relief and financial freedom, allowing you to move forward without the ongoing stress of an open workers’ compensation case.
What are the drawbacks?
While a C&R can seem appealing, it’s important to consider the potential downsides:
- You may give up the right to future medical treatment for your work-related injury: This means if your condition worsens later, you’ll be responsible for any additional medical costs.
- Once settled, you can’t reopen your case: This finality can be risky, especially for injuries that may have long-term or unforeseen effects.
- You might settle for less than your claim could be worth in the long run. This is particularly true for injuries that may require ongoing care or limit your future earning capacity.
While a C&R can offer a quick resolution to your workers’ compensation claim, it’s not always the best choice for everyone. Consider your individual circumstances carefully, including the nature of your injury, your long-term health outlook and your financial situation.
Get the clarity you need
Your long-term well-being should be the top priority in any settlement decision. When in doubt, don’t hesitate to seek advice from an attorney who can help you understand the full implications of your decision.