What to Expect When Workers' Comp Offers a Settlement and How to Prepare

In 2023, the United States reported 5,283 fatal work injuries, a 3.7% decrease from 2022, with a fatal work injury rate of 3.5 fatalities per 100,000 full-time equivalent workers. Employers reported 2.6 million nonfatal workplace injuries and illnesses, an 8.4% decrease from 2022.

Workers' compensation helps employees recover from work-related injuries or illnesses by providing them with a source of income while they are unable to work. It is important to understand the terms included in the settlement offer, as they can significantly impact your future rights, medical coverage, and ability to seek further compensation if your condition worsens.

Workers' compensation lawyer Vernon Sumwalt advises that you carefully review whether the compensation offered covers both your current and future medical expenses.

This article will help you understand what to expect when workers' compensation presents a settlement offer, what factors are involved, and how to check if the settlement fully addresses your medical needs, lost wages, and long-term recovery.

Understanding the Settlement Offer: Key Terms and Concepts

Some of these key terms and themes involved in workers comp settlements can be difficult to understand, especially for those who are not familiar with settlement negotiations. 

One of the most important and common terms to understand in a workers' compensation settlement is Maximum Medical Improvement (MMI). The term refers to the point at which one's condition is stable enough to settle. "Settlement amount" may refer to the amount of compensation you expect to receive for medical care, lost wages, suffering, and pain.

You should learn and be familiar with the term "release from liability." This term means that by accepting a settlement, you agree not to pursue any other claims or compensation related to the injury, regardless of new issues that may arise in the future.

Knowing how physical impairment ratings work and how they could positively impact your earning capacity is important. Having a comprehensive understanding of these factors will allow you to check if the settlement is adequate for your needs.

Factors to Consider Before Accepting a Settlement

Before accepting a workers’ compensation settlement, you need to evaluate other factors that could influence your long-term well-being

Look at the total amount being offered. Is it enough to settle all your medical bills, lost wages, and any treatment you may need? Check your timeline for recovery. If your injuries are still healing, a settlement may not cover all future costs.

If your injury has a long-term impact on your ability to work, you may be eligible for higher compensation. 

When will workers' comp offer a settlement in California or other states? Generally, you can expect a settlement offer after reaching maximum medical improvement (MMI) and receiving your permanent disability rating. 

The timeline of the settlement offer varies based on your case's specifics. Consult a qualified professional who can assess your settlement and explain its implications for your future prospects.

The Importance of Medical Evidence in Your Claim

A successful claim relies on strong medical evidence.

Medical evidence may include medical histories, notes, and test results that demonstrate the extent of your injury and clearly show how your condition affects your life. Creating and organizing thorough documentation establishes a clear link between your injury and the environment in which you were expected to work.

Insurance companies also rely on medical evidence to check the merit of your claim. Insurance companies will calculate the settlement value based on the medical evidence presented. In the absence of compelling medical evidence, insurers may undermine your case or settlement negotiations.

The Role of an Attorney in the Settlement Process

Workers' compensation lawyers are critical to the processing of your workers' compensation settlement offer. They can examine your case and guarantee that you understand your rights and options. They help you know the fair value of your claim, giving you the courage to communicate with insurance companies. 

Workers' compensation lawyers can assist you in gathering all of the documentation that supports your claim, submitting and discussing your application with the relevant parties, and avoiding common pitfalls that can jeopardize a successful settlement.

Next Steps After Receiving a Settlement Offer

When you receive a settlement offer, take the time to review its specifics, including the amount and terms. 

Consult your attorney next regarding the implications of the offer. They will tell you whether the offer is fair or if you should try to negotiate for a higher amount.

If you're going to accept the offer, see to it that you know what waiver of claims you're going to sign. Be prepared to compromise and give a clear explanation of your reasons if you choose to turn down the offer.