What Is A Structured Settlement In Workers Comp

It is certainly important to weigh the pros and cons carefully and with the help of an experienced workers comp lawyer.

What is a structured settlement in workers comp.

A structured settlement is financial agreement for a series of periodic payments an injured person receives over a set time period or over the person s life time to settle any legal obligation including a workers compensation claim. I strongly urge injured workers to consult with an experienced workers compensation attorney before agreeing to a structured settlement. If the employee decides to pursue a larger workers compensation settlement negotiations will take place between the employee his or. The good news is that the majority of workers 73 receive a settlement or award.

Typical workers comp settlement amounts. However the claim that selling workers comp awards for a lump sum is definitely impossible or always illegal may be an overstatement. In most cases the employee has the option to accept the offer pursue a lump sum settlement or negotiate for a larger structured workers comp settlement. In some cases such as if the worker is able to be rehabilitated and return to work the structured payments may cease after a period of time.

Conceptually workers compensation payments are intended to be partial replacement of income covering present and future lost earnings resulting from a workplace injury on the job injury or illness. Because selling your workers comp is complicated and there are many factors involved be prepared for difficulties in finding someone willing or able to buy your structured settlement payments. What is the average workers compensation settlement. If your claim is disputed a trial or workers comp hearing is time consuming and risky.

Employers should stay involved to avoid a lawsuit. In workers compensation there are many ways upon which an injured worker can settle their case. It is only one of many options available under the industrial insurance act and it may involve giving up other benefits. In california workers compensation law there is the provision to allow injured workers to settle their cases via a compromise and release.

A workers compensation judge or hearing officer will need to approve your settlement. Injured workers should never feel like a structured settlement is their only option. A structured settlement can also be used to fund a workers compensation medicare set aside msa account where the employer is responsible for the cost of the primary medical treatment for the claimant and medicare is the secondary payer.