Should I Accept a Lump Sum Settlement for Workers’ Compensation?

You may be shocked when your employer’s insurance carrier approves your workers’ compensation petition. Not only that, but they offered you a lump sum payment. While you may be eager to get a hold of this large amount of money, especially if you desperately need financial relief, we encourage you to step back and reflect on this proposal. With that being said, please follow along to find out whether it is better to accept or deny a lump sum settlement offer and how a proficient lawyer of workers’ compensation benefits in Florida, at The Law Firm of Kevin A. Moore, can help you make this critical decision.

How is a lump sum calculated for a workers’ compensation claim?

First things first, you must figure out whether the lump sum payment is a fair and reasonable assessment of the financial assistance you would need to cover your injury-related expenses, or if you are being low-balled. For this, you must calculate in the same way as your employer’s insurance carrier should have. 

So, you should first determine your average weekly wage and compute what approximately 66.67 percent of that would be. Then, you should multiply this number by the remaining weeks of disability you likely have. You may get a better idea of this from your doctor’s permanent impairment rating. 

From here, you must factor in the cost of your anticipated future medical expenses (i.e., follow-up doctor’s visits, surgical procedures, rehabilitation sessions, prescription medications, etc). Again, your treating doctor may inform you of the medical care that is necessary to receive for a full recovery or maximum medical improvement. 

Should I accept a lump sum settlement for my workers’ compensation claim?

Even if you conclude that an insurance carrier’s offer is accurate, your lawyer may advise you to negotiate for a higher lump sum settlement amount. This is if your lawyer believes the insurance carrier would likely lose the case at a hearing. Simply put, if they are aware of this likelihood, they may be more willing to accept your counteroffer for more money. 

However, after learning the details of your case, your lawyer may dissuade you from accepting a lump sum settlement altogether. This may be if the recovery timeline for your illness or injury is too uncertain. If so, you may not know for certain whether the lump sum amount is enough to cover all your future needs. And once you accept an offer, your case cannot be reopened.

All of this to say, with a lump sum settlement, you are risking an underestimation in exchange for immediate financial aid. If you are still torn about what to do, talk it through with a talented lawyer of workers’ compensation benefits in Florida. At The Law Firm of Kevin A. Moore, you can feel confident that your best interests are already looked after. Give us a call today.