Being injured while working on the job can be a very stressful and challenging experience. Not only may you be dealing with physical pain, but you might not be able to work, which could end up costing you a significant amount of money. Fortunately, injuries that occur while you are at work should be covered by workers compensation insurance. Depending on where you live, your employer may be required to carry a full workers compensation insurance policy.
If you have been injured and would like to be reimbursed for expenses you incur as for well as any suffering due to the injury, you will need to file a claim with the workers compensation insurance provider. In many situations, the claims will be handled outside of the courtroom through negotiations and settlements. Depending on how your claim is handled, you may end up receiving a lump sum payout. If you do receive a lump sum payout as part of the settlement, this will mean several different things for you.
No Further Claims
One of the main things that you need to remember when you accept a lump sum settlement is that you will not be able to make any further claims. If you have suffered some medical bills and are struggling to work, the lump sum payout will often come with your agreement to not pursue any further claims in the future. This means that any additional cost that you could incur will likely not be covered by the workers compensation policy. Because of this, you will need to make sure that you properly assess and estimate what your future costs could be.
No Monthly Payouts
In many situations, you might receive a monthly payment from your employer or the workers compensation insurance company while you are injured. However, this will quickly and as soon as you accept a lump sum payout. The calculation of the lump sum payout will typically include an assessment of what the insurance company is already providing you in the form of a monthly check.
Expectation to Work
Another important factor to consider when you accept a lump sum payout for your workers compensation claim is whether or not you are expected to go back to work. One of the reasons why workers compensation exists is because it will protect people who are not able to work due to an injury. If you have been injured while at work your ability to spend time not working may end after you accept a lump sum payout. This could mean that you could lose your job if you are not able to work, which will include losing any benefits you had been receiving in the interim time.