Should you consider a lump sum workers’ comp payment?

On Behalf of | Aug 16, 2022 | Workers' Compensation

Generally speaking, workers’ compensation is meant to cover medical costs and lost wages. This can be paid in weekly or monthly installments, but it can also be paid as a lump sum. This is a process that is used in Pennsylvania and many other states. It is not an automatic option that you can ask for, but the insurance company may offer it to you in some cases.

Many people are very interested in taking a lump sum because they want to get the process over with. They simply want to get the money so that they can pay their bills and focus on healing and getting back to work. They may also be attracted to the lump sum because the total seems so much higher than getting installments. But are there some downsides to a lump sum that you should consider?

Do you know the full extent of your injuries?

The biggest problem with a lump sum is that you cannot seek further compensation after you’ve received it. Your case is considered closed and you’re not allowed to take things any further.

So, if there are complications with your injuries, you may not be able to get the full compensation that you actually need. Perhaps you believe that you’ll be able to return to work in two months. But if you take the lump sum and then find out that you’re actually going to be out of work for four months, you may be out of luck.

Medical conditions are not always clear. People heal at different rates, there can be a lot of different complications and medical professionals can simply be wrong about how severe they think the injuries are or how long they will last.

If you’re working your way through this process and considering all of your options, you can see why it’s crucial to know what legal steps to take to seek the proper solution for your situation.