How Do Benefits and a Settlement Differ for Workers’ Compensation?

When talking about the compensation received following a workplace injury, many people incorrectly use the terms settlement and benefits interchangeably. While these both represent the funds that someone will receive for a successful workers’ compensation claim, they are drastically different in their approach. If you’re unsure what the difference between these two options are or which one is right for you, you’ll want to keep reading as the following blog and a Florida workers’ compensation attorney can help you navigate these difficult matters.

Is a Settlement Different From Workers’ Compensation Benefits?

When you file for workers’ compensation benefits, these are ongoing orders that can help provide funds to cover the cost of medical care, as well as disability payments to compensate injured workers for their lost wages. Disability can be used to compensate those who can work but with restrictions for a period of time or indefinitely, as well as to help those who are unable to work for a period of time or indefinitely. In general, these awards can be continually altered to help cover the cost of medical care the recipient needs in relation to the workplace injury.

A settlement, on the other hand, is an agreement reached by both parties. These are entirely voluntary, and the amount can be negotiated by both parties. For example, you may submit your claim with a proposed monetary settlement amount, and the insurance company can send a counteroffer after reviewing your information. Negotiations may continue back and forth until both parties are able to reach an agreement. However, once a negotiation is met, you can receive a lump sum amount, but once a settlement is agreed upon, it cannot be changed. As such, if your condition unexpectedly worsens and you require additional care after you reach a settlement, you will be unable to reopen your case or seek compensation for those costs.

Which Is Right for My Circumstances?

Both settlements and benefits have their advantages and disadvantages, so it’s in your best interest to discuss your circumstances with an experienced attorney to determine which option is best for your unique workers’ compensation claim. In general, you’ll find that you may receive more funds with a settlement, as benefits only help cover the value of the disability, but benefits can help in the event that your health changes.

As you can see, these matters can be incredibly difficult to navigate. At the Law Firm of Kevin A. Moore, our firm understands how difficult these circumstances can be to navigate. That is why our team is committed to helping you through these challenging times to fight for the best possible outcome for your circumstances. When you need assistance, our firm is ready. Contact us today to learn how we can fight for you.