What Is a Workers’ Compensation Settlement?
A settlement is a voluntary agreement between you and the insurance company. In exchange for a lump sum or structured payments, you agree to close part or all of your case. Some settlements include ongoing medical benefits, while others may close both medical and wage benefits.
Settlements can offer a faster resolution. They often provide immediate funds, which can be helpful if you’re struggling financially. However, they may also limit your ability to seek future benefits. That’s why it’s essential to fully understand the terms before signing anything.
When Is It Best to Settle?
Settling a workers’ compensation case may be the right move if:
- You’ve reached maximum medical improvement (MMI): This means your doctor believes your condition is stable and unlikely to improve with more treatment. At this point, both sides have a clearer picture of your long-term needs.
- You want control over future care: Some injured workers prefer to manage their treatment outside of the workers’ compensation system. A settlement can provide funds to pay for future medical needs on your terms.
- The insurance company is offering a fair amount: If the settlement reflects your lost wages, medical expenses, and potential disability rating, it may be a reasonable outcome.
- You want to avoid the stress of a trial: Legal hearings can be time-consuming and emotionally draining. Settling lets you avoid uncertainty and delays.
When Should You Consider Going to Trial?
There are times when settlement simply isn’t a fair or realistic option. You might need to take your case to trial if:
- The insurance company denies your claim: If they refuse to pay for medical treatment or wage loss benefits, a hearing may be necessary to secure what you’re entitled to.
- The settlement offer is too low: Some insurers will offer less than what your claim is worth. If negotiations stall, going to trial may be the only way to recover full compensation.
- There are complex issues in your case: Disputes over your disability rating, the cause of your injury, or the extent of needed treatment often require legal arguments and expert testimony that a judge can evaluate.
- You need ongoing benefits: If you rely on regular payments and continued care, a trial may help you preserve access to these long-term supports.
What Happens at Trial?
A workers’ compensation trial, also known as a hearing, is less formal than a typical courtroom trial but still involves presenting evidence, witness testimony, and legal arguments. An administrative law judge reviews the facts and issues a decision. While it can take time, a favorable ruling can award you the benefits you’re entitled to receive.
How Do You Decide?
There’s no one-size-fits-all answer. Settling may be the best option in some situations, while going to trial is necessary in others. The decision often depends on your medical status, financial needs, and the strength of your case.
Before making a decision, consult with an experienced workers’ compensation attorney who understands the local laws and can thoroughly evaluate your options. An attorney can help you negotiate a fair settlement or represent you in a hearing if that’s the best route forward.
At Shugarman & Mehring, we’ve guided many clients through this important decision. Our goal is to help you understand your rights and protect your future. Whether you’re considering settlement or preparing for trial, having someone in your corner can make all the difference.
If you’re unsure of your next step, contact Shugarman & Mehring for a free consultation. We’re here to help you make the right choice—one that supports your recovery and long-term well-being.
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