Worker’s comp settlements are complex.
And complicated matters don’t work in favor of the average worker.
In fact, they work against him.
Signing a settlement too early, or without all the proper knowledge, can cause you to leave money on the table that you’re legally owed. And we don’t mean a little money. We mean a lot of money.
The problem is, once that settlement is signed?
It’s permanent.
That’s why before you make any decisions about your job injury compensation case, it’s smart to speak with a worker’s compensation lawyer in Minneapolis to learn more about your rights and legal options.
Ready to learn more? Here’s what we’ll cover:
- Why Workers’ Compensation Settlements Are Complicated
- What Signing a Workers’ Comp Settlement Means
- The Workers’ Comp Settlement Factors
- Mistakes Workers Make Before Signing
- When To Contact A Lawyer
Why Workers’ Compensation Settlements Are Complicated
Believe it or not…
Getting hurt on the job happens way more than people think. In fact, there were 2.8 million recorded work injuries and illnesses in 2022. Employers know this too, which is why they have workers compensation insurance to help cover the financial losses workers experience after a work injury. But here’s the thing… that system isn’t designed with workers as the priority.
Businesses and insurance companies are.
That’s why workers who go it alone with their job injury compensation claims typically settle for far less than their claim is actually worth. Once that settlement is agreed upon?
It’s final.
Period.
Seeking legal advice to protect yourself is one of the most intelligent decisions you’ll make as an injured worker.
What Signing a Workers’ Comp Settlement Means
If you’ve never been involved in a workers’ compensation case, you likely don’t fully understand what you’re agreeing to when you sign that settlement document.
Think about it…
A workers’ comp settlement is a legally binding contract. It releases your employer from any future liability related to your injury, even if your injury takes a turn for the worse down the road.
Considering how much money we’re talking about here…
That’s an extremely high price to pay.
Especially when you learn what insurance companies aren’t telling you upfront:
- Insurance companies frequently try to settle claims before the full extent of an injury is known
- The first settlement offer will always be lower than what your claim is actually worth
- Accepting a settlement usually cuts off your right to future medical treatment
- In most cases, you can’t reopen a workers’ compensation claim after settlement
Insurance companies only want to pay out as little as possible, as quickly as possible. Realizing this makes you far less likely to jump at their settlement offers.
The Workers’ Comp Settlement Factors
No two workplace injury compensation claims are equal.
Nationally, the average cost of a workers’ compensation claim in 2022-2023 was just under $47,316. But claims can range from as low as $2,000 to well into six figures. Several things factor into the value of your claim:
Nature of the injury: The more severe the injury, the higher the settlement will likely be. For example, injuries that result in permanent disability, limited mobility, or loss of function tend to result in higher settlements. Injuries from vehicle accidents that occur while on the job average over $91,000 per workers’ comp claim. Amputations or spinal injuries have an even higher average payout.
Medical expenses: Amounts awarded factored in medical expenses related to the injury, both past and future.
Lost wages: Both current and future lost wages due to time off work are also considered.
State regulations: Workers’ compensation rules, benefit limits, and calculations vary from state to state.
Permanent impairment rating: Doctors will assign you a permanent disability rating once you’ve reached Maximum Medical Improvement. That rating factors into your settlement payout.
Knowing your claim is worth before signing any paperwork is crucial. The problem is most workers don’t even know what questions to ask.
Mistakes Workers Make Before Signing
Workers make these mistakes all the time.
Work injuries are painful, stressful, and financially draining. No one wants to be dealing with them. But one of the worst things you can do when handling a work injury is rush through the settlement process.
Here are some of the top mistakes workers make:
Accept the first offer: Is the first offer the insurance company makes fair? Absolutely not. Think of it as the starting point of the negotiation process, not the number you settle on.
Settle before reaching MMI: Settling before your injury has reached Maximum Medical Improvement is asking for trouble. There’s literally no way of knowing what costs may be left on the table.
Forgo future medical care: Injured workers often overlook or underestimate future medical treatment, expenses, rehabilitation, and surgeries.
Don’t have a lawyer review your settlement: Workers compensation settlements are tricky legal documents. You should always have an attorney review any agreements before signing them.
Rule of thumb…
If the insurance company is working you hard to settle your claim quickly, there’s a reason they want to close your case ASAP — and it probably doesn’t involve handing you your money.
When To Get Legal Help
Some workplace injury cases are cut and dry.
Minor injuries with no disputes as to how the injury occurred will often result in an appropriate, early offer that doesn’t require legal assistance. However, when it comes to major job injury compensation claims, having an attorney on your side can make all the difference.
You should speak with a lawyer if:
- You suffered a severe injury or were disabled
- Your employer or insurance company disputes your claim
- You feel your settlement offer was too low or came too soon
- You have future medical expenses that have not been factored in
- You’ve been pressured to return to work
Work injuries cost Americans $176.5 billion in 2023. You can bet insurance companies and large companies have clauses in their contracts to protect that money.
Don’t shortchange yourself by not knowing everything you deserve.
The Final Word
Worker’s comp settlements are not to be taken lightly.
They should be thoroughly thought out and vetted by someone who knows workers compensation law inside and out. Before you agree to any settlement, do your research. Learn what your claim is worth. Learn what state laws say you’re entitled to. Then make your decision.
It takes time, but knowledge is power.
Once you sign that agreement, it’s too late to learn.
Contact Meshbesher & Spence today to speak with an experienced workers compensation attorney who can help you better understand your rights and options after a work injury.
Frequently Asked Questions
What happens if I accept my workers’ comp settlement too early?
You may leave money on the table. If you settle before your injury has reached MMI and future medical expenses have been calculated into your settlement agreement, you’ll most likely need to pay out of pocket for those expenses yourself.
Can I negotiate a workers’ compensation settlement?
Absolutely. Workers compensation settlements are never set in stone. Injured employees have the right to negotiate a settlement with insurance companies.
Do all workers’ comp cases go to settlement?
Not necessarily. Some work injury cases are settled through weekly benefit payments rather than a lump sum payout. A workers’ compensation attorney can help you understand which avenue would work better for your case.
