What Is A Structured Settlement In Workers Comp

However the claim that selling workers comp awards for a lump sum is definitely impossible or always illegal may be an overstatement.

What is a structured settlement in workers comp.

A workers compensation judge or hearing officer will need to approve your settlement. 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. If the employee decides to pursue a larger workers compensation settlement negotiations will take place between the employee his or. Employers should stay involved to avoid a lawsuit.

There are advantages and disadvantages to settling your workers compensation claim through a lump sum settlement or some type of structured settlement. 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 the average workers compensation settlement. It is only one of many options available under the industrial insurance act and it may involve giving up other benefits.

Injured workers should never feel like a structured settlement is their only option. In california workers compensation law there is the provision to allow injured workers to settle their cases via a compromise and release. 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. If your claim is disputed a trial or workers comp hearing is time consuming and risky.

After a workplace injury you may file a workers compensation claim and be awarded a structured settlement with regular monthly payments. 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. The good news is that the majority of workers 73 receive a settlement or award. I strongly urge injured workers to consult with an experienced workers compensation attorney before agreeing to a structured 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. 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. A structured settlement enables workers compensation payments to be tailored to better suit the needs of the injured worker.