If you’ve been injured as a result of a workplace accident, you are probably overwhelmed with all of the complex legal procedures you’ll have to go through to get the benefits you rightly deserve. You may think weekly benefits are the only way to receive your workers’ comp benefits. However, this is not the case. You may instead choose to accept a lump-sum settlement from your employer’s insurance company.
What is a Lump Sum Settlement?
Many insurance companies prefer to offer a one-time lump-sum settlement to injured workers instead of having to pay out weekly benefits over a period of time. This settlement is done out of court and is a contract between you, the insurer, and sometimes your employer. It’s important to realize that you give up certain rights by accepting a lump-sum settlement so it’s best to speak with an attorney to go over your options.
Benefits of a Lump Sum Settlement
It may seem enticing to receive a large payment all at once instead of a fraction of your weekly wages over a period of time. It may even be possible that you will receive more money with a settlement than with weekly benefits. Additionally, a judge may find that you are not entitled to workers’ comp benefits, so a settlement can sometimes be a good option in certain cases.
Drawbacks of a Lump Sum Settlement
When you accept a settlement offer, you are giving up a number of rights. If you choose a lump-sum settlement, you will NOT receive:
- Weekly benefits
- Disfigurement benefits
- Future medical treatment coverage
- Loss of function benefits
It is also presumed that you will not be able to return to the same job for one month for every $1,500 awarded in your settlement.
Should I Consider a Lump Sum Settlement?
When deciding whether or not to accept a settlement offer, it is imperative that you speak with an experienced workers’ comp lawyer. There are intricacies and complexities that are designed to trip up people with no law background. Your lawyer will advise you on whether or not you should accept a lump sum by examining a few factors, such as:
- Your ability to return to work
- Potential future medical costs
- Your current income and expenses
- The effects on retirement and pension rights
- Evidence and proof of your work-related injury
Contact a Massachusetts Workers’ Comp Attorney
Our legal team at Powers & Caccavale is experienced in dealing with all aspects of workers’ compensation cases. Choosing between a lump-sum settlement and weekly benefits can be a hard decision, especially if you have no knowledge of workers’ comp law. That’s why our goal is to make everything as easy as possible for you. If you need legal help, contact us today for a free case evaluation.