If you get injured on the job, you may seek workers’ comp benefits. If these are approved, your employer likely has workers’ comp insurance, so you will get a payout. They may offer you a lump sum that is intended to cover all of your costs.
On the plus side, this means that you get a significant amount of money right away. If you have outstanding medical bills, you can use the lump sum to pay them off. If you’ve been losing wages because of your injury and how it has limited your ability to work, the lump sum covers some of these losses. It can be very tempting to just accept that check. But there are some potential downsides, as well.
It may close the case
The biggest issue is that a lump sum payment may mean that you have to agree you won’t seek further compensation in the future. Accepting the payment closes your case, and the insurance company considers it to be over.
But this is a risk. Say that you suffered a spinal cord injury. It seems to be healing at first, but then it begins flaring up, and the doctor tells you that you’re going to need another surgery.
The problem is that you already took your lump sum workers’ compensation payment. Are you still able to get more compensation for this future surgery? What if you miss even more wages while you’re recovering from the surgery? If you can’t seek compensation, then you may suddenly feel like you made a serious mistake accepting the lump sum in the past.
This is why it’s important to work closely with medical professionals, who can help you determine what your condition looks like and what type of healing or treatment to expect. Make sure you also know what legal options you have when seeking the workers’ comp benefits you deserve.
