Workers compensation settlements are made based on permanent total or partial disability, temporary partial or total disability and expected medical treatment. Settlements are either awarded as a lump sum or as a structured settlement in which the claimant receives payments over a specified period of time.
Agreeing to a workers compensation settlement with the insurance company avoids the hassle of going to trial. In some cases, if the employee chooses to refuse the settlement and opts for trial, the judge may determine a smaller reimbursement than that offered by the insurance company. Coming to an agreement with the insurance company tends to be better for both parties.
The type of disability is the primary source of data when it comes to determining benefits. Serious disabilities, for example a permanent total disability like paralysis, normally have a higher payout than something temporary and partial, such as a knee or back injury. Medical expenses, such as expected treatment, may also be included in the settlement.
When it comes to actual reimbursement, the insurance company may offer a lump-sum settlement which means an amount is paid to the employee at one time, with no future payments expected. Another option is a structured settlement. This option pays monies out to the employee at intervals, such as monthly, over a designated period of time.