If you’ve been seriously injured at work, receiving a workers’ comp settlement offer can seem like a lifeline. A lump-sum payment can provide much-needed financial relief, especially if you’ve been dealing with medical treatments, lost income and uncertainty about your future.
But not every settlement offer is in your best interest. Insurance companies are more worried about their bottom line than yours. And accepting a workers’ comp settlement can have lasting consequences. Therefore, before signing any agreement, you need to understand what you’re getting and what you’re giving up.
Here are three warning signs to watch out for.
1. The settlement doesn’t adequately account for future medical needs
Some workplace injuries require ongoing treatment long after the initial incident. Chronic pain management, physical therapy, prescription medications or future surgeries are expensive.
If your settlement closes your right to future medical benefits, you could be responsible for paying those costs out of your own pocket.
2. You’re being pressured to sign quickly
Insurance companies sometimes present settlement offers with the suggestion that you should accept them immediately. They may tell you that it’s their best offer or that it won’t be available later.
You should never feel pressured into making any decision without fully understanding your rights. It’s wise to slow down and carefully review the proposed agreement. A settlement is a legal contract, and once approved, reversing the decision can be extremely difficult.
3. The settlement doesn’t reflect the full impact of your injury
A fair settlement should consider more than just your medical bills. Depending on the nature of your injury and other circumstances, the offer should reflect:
- Your permanent impairment rating
- Future wage loss
- Ongoing medical treatment
- Work restrictions
- Your ability to return to your previous occupation
If the offer fails to address the long-term effects of your injury, you may want to hold off on agreeing to settle.
A lump-sum payment can provide some certainty and financial stability, but only if it accurately reflects the full impact of your workplace injury. The settlement agreement’s terminology can be overwhelming, and you may not fully understand what you’re getting and what you may be giving up. Having someone to explain your rights, estimate the long-term value of your claim and negotiate a fair resolution is invaluable to your health and financial well-being.