Today we’re going to talk briefly about workers’ compensation lump sum settlements, or as the legal term goes, compromise and release. Compromise and release is an agreement between the workers’ compensation insurance carrier and the individual receiving the benefits. The insurance carrier will make a lump sum (one-time) payment in exchange for the individual giving up some or all of his rights with regard to workers’ compensation. The two main rights you have are your disability benefits and payment of medical bills. A typical question asked is whether or not this will be the right thing to do. It really all depends. It’s a very complicated situation and takes a lot of time and effort to determine whether or not it’s right for the individual.
Determine If Compromise and Release Works for You
First, we need to assess whether or not this one-time payment will be enough to cover all expenses for the rest of your life. If it’s not, I will have a difficult time telling you to take the payment, although the decision lies with you. It’s important to have another source of income if you settle for the lump sum.
Again, this is very tough to negotiate. Making sure you get the maximum amount in your settlement takes a lot of time and effort. It’s important to have an experienced work injury lawyer on your side. Second, in these compromise and release settlements, it’s important to pay close attention to what the insurance carrier wants you to give up. For instance, some carriers insist you give up medical benefits for the settlement. That’s not always going to work and may not be wise.