Being injured in any type of accident is stressful. Medical expenses pile up and you lose wages due to your inability to work. Workers’ compensation insurers often make an early settlement offer, knowing you will be tempted to accept it since you need the money. Before you do, you need to consult an experienced workers’ compensation attorney who can explain to you the pros and cons of accepting the settlement.

Pros of Accepting a Workers’ Compensation Settlement

  • Receiving a lump sum of money. The main advantage to accepting a settlement is that you will have a lump sum of money all at once instead of depending on a monthly payment. You may be able to invest the money and receive interest.
  • It is a sure thing. You may receive more money if you go to trial. On the other hand, there is a chance you will lose your case or be awarded less money than the insurer offered. If you accept the settlement, you avoid the risk of losing at trial. You also avoid the emotional and financial costs of going to trial as well as the time involved.
  • Benefits you receive may turn out to be bonuses. In some cases, a lump sum settlement includes an amount you expect you will need to pay for a future surgical procedure. If it turns out you do not need the surgery, you will still be able to keep the money, which may seem like a bonus. workers’ compensation

Cons of Accepting a Workers’ Compensation Settlement

  • You generally have to give up your right to obtain any further compensation in the future. If you face an unexpected future medical expense, you cannot reopen your case and ask for more money.
  • There is the “being human” risk that you will use the settlement money for a major purchase, to get caught up on other bills or in other ways spend the money so that there is none left in the future to compensate for lost wages or to pay for future medical expenses.
  • There is a risk that you placed too low of a value on your disability so that the settlement sum does not adequately compensate you for your injury.

If you have a workers’ compensation claim, it is in your best interest to seek legal counsel before settling with your insurer for a lump sum. You want to be sure an appropriate value has been placed on your case so that you receive all the compensation to which you are legally entitled. Contact us at Campbell & Associates for a free consultation.