Lump Sum Settlement in a Workers Compensation Case –
What does it mean to take a lump sum settlement in a workers compensation case? Well, the answer will vary depending on the circumstances of the claimant. However, in overall, it means that the entire case is closed with the workers compensation insurance company in exchange for cash Unlike closing a case via stipulation and award or judgment and award, where permanent disability payment is paid and medical treatment provided in accordance with the terms of the final medical report, a cash payment ends things forever, and is known as a compromise and release (C&R). Generally, a C&R is only available when an employee no longer works for the company that caused the industrial injury. This means that the employee is already terminated, laid off, or will submit to voluntary resignation. There is a reason for this. The reason is that continued employment will lead to the potential for the filing of another claim of injury to the same body parts in the present claim as part of a future claim. Since workers comp is a no-fault system, the potential for future liability to the same employer and insurance carrier is possible unless employment ends. The point of a C&R is to remove the liability of a particular employee from the books permanently. Since future allegation of injury would be possible if the employment relationship continues, a compromise and release, in general, is only had where the employment relationship ends forever. So what does taking a workers compensation lump sum payment mean? Let’s talk about it:
What A Lump Sum Settlement In Workers Compensation Means
When someone takes a one-time cash payment, they are exchanging their rights under the law for it. In general, a bargain of this nature means that the claim is completely closed in exchange for a certain amount of money to be negotiated. The negotiation is extremely different than in personal injury law. This is due to the fact that a judgment does not lead to an award of a lump sum of money. Instead, it leads to a finding that the employee is entitled to a certain level of permanent disability payments and a certain set of medical benefits. In the end, the insurance carrier will never be forced to pay out a lump cash payment. This in effect means that the negotiation is based more on what the carrier is willing to pay to be rid of the case rather than what it is worth in dollars to the employee if the case is adjudicated. This can create a disparity in bargaining power that gives the adjuster an edge up in at the negotiating table on the basis that trial will not necessarily result in higher cash value. A trial can in fact end as a hollow victory for the applicant.
What You Should Do With Your Insurance Claim
If you are wondering what you should do, do not rely on the advice of friends or coworkers. Instead, seek counsel with an experienced California workers compensation lawyer who can guide you through the decision-making process. Once you know your options, consult with close family or friends based upon the reality of your lawsuit instead of on hopes and dreams or what happened in someone else’s case.
Here at our workmans comp law attorney office, we counsel our clients on the best course of action in addition to providing strong advocacy in the litigation process. This makes it possible for them to intelligently weight their options so that they can accurately choose the best settlement option. If you are facing a sum of money for your rights, always make sure to speak to a knowledgeable lawyer about what your options are before accepting. Otherwise, you might be shortchanging yourself!
Call California injury lawyer, right now! He will provide you with a free initial consultation. Just call him at 844-584-8444 or submit the form found at calinjurylawyer.com to request that he call you! It is that simple. Speak to a lawyer right now, one on one.