What Is A Structured Settlement In Workers Comp

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 a structured settlement in workers comp.

If your claim is disputed a trial or workers comp hearing is time consuming and risky. However the claim that selling workers comp awards for a lump sum is definitely impossible or always illegal may be an overstatement. What is the average workers compensation settlement. 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.

After a workplace injury you may file a workers compensation claim and be awarded a structured settlement with regular monthly payments. 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. In california workers compensation law there is the provision to allow injured workers to settle their cases via a compromise and release. Typical workers comp settlement amounts.

The good news is that the majority of workers 73 receive a settlement or award. In workers compensation there are many ways upon which an injured worker can settle their case. I strongly urge injured workers to consult with an experienced workers compensation attorney before agreeing to a structured settlement. A workers compensation judge or hearing officer will need to approve your settlement.

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. It is only one of many options available under the industrial insurance act and it may involve giving up other benefits. It is certainly important to weigh the pros and cons carefully and with the help of an experienced workers comp lawyer. There are advantages and disadvantages to settling your workers compensation claim through a lump sum settlement or some type of structured settlement.

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. 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.