Everyone deserves a safe and secure work environment. Unfortunately, accidents happen in the workplace that results in employee injuries. If you file a workers’ compensation claim following your workplace injury, there are a few possible resolutions for your case. Your employer may opt to pay your claim without the need for litigation. Or, your employer may deny your claim, and this can end in litigation.
The process of litigating a workers’ compensation claim can be a long and tiresome one. If you have your way, you will have the option of accepting your workers’ compensation benefits in lump sum or structured settlements. While a lump sum settlement may seem attractive, it is important that you weigh the pros and cons of this arrangement before putting ink to paper.
What is a lump sum settlement?
As the name suggests, this is the total amount of compensation you are paid when you win your workers’ compensation case. Your employer’s insurance will pay you one big chunk of money all at once and then close your case, meaning that they will not assume any future financial obligations relating to your injury.
Lump sum settlements come with distinct benefits. First, you will receive all the money you have been awarded at once. If you have good money management skills, it will certainly be helpful to have a finite amount that you can spend as you need to. Second, you will have the money at your disposal to seek whatever treatment you need to recover from your injuries. In other words, you will be in charge of managing your own treatment schedule. No requests for proof of medical expenses.
On the other hand, lump sum settlements come with their share of drawbacks. The most noticeable one is that you may not get back to your employer should you exhaust your compensation before recovering fully.
If you win your workers’ compensation claim, you may have to decide how the compensation will be paid. However, before accepting a settlement, it is important that you understand the merits and demerits of each settlement option.