How Do Workers Compensation Settlements Actually Work in Practice

Stethoscope and judgement hammer.

National Safety Council estimates that employers suffered a loss of $171 billion in 2019 due to workplace injuries.

Medical costs and lost wages due to a Jobsite injury can be quite expensive for the employer. Some employees go as far as falsifying claims so that they can get a huge settlement. Thus, you must understand the process of a worker’s compensation plan.

If you want to get your company a solid insurance plan that focuses on employee protection, then look no further. Here is a step-by-step guide on how workers’ compensation settlements work in practice.

Filing a Claim

When an employee suffers a workplace injury, they should report the incident to the employer. In most states, the employee has a grace period of thirty days. As an employer, once you receive the report, your first step should be to ensure that the employee receives medical care.

Besides, it’s your responsibility to file a worker’s compensation settlement claim and send it to your insurer. The insurer then accesses the damage and sends a certain amount as compensation.

The employee can choose to accept or reject the offer. If they do the latter, they then look for the best workers comp lawyer to sue for a better settlement.

Moreover, an insurance company can end payment even after an employee has accepted a settlement offer. This often occurs when the insurance company proves the injury did not occur at the site of work. The representative from the insurance company can take matters to court with the employee.

When the Workers Compensation Settlement Goes to Court

Once the settlement reaches the judges, the court has the power to decide on a settlement amount. Both parties can agree to this or appeal the settlement. If the insurance company does not file an appeal within 30 days, it pays the agreed amount.

Workers Compensation Payment Plan

The insurance company can decide to pay in installments or lump payments. In case of the lump payment, the employee receives all medical costs, lost wages, and other benefits at once.

As for installments, the employee will receive structured payment over some months. Whatever the case, the employee must sign the agreement that they have received payment.

Your Role in the Workers Compensation Plan

As an employer, you will not have much to say about employee protection or insurance costs. Most of the interaction will be between the insurance company’s representative and the employee.

It’s in your best interest to create a conducive environment between the insurance carrier and your employee. You better remain on top of things to avoid getting blamed for mismanagement of the situation. Transparency is the best policy in such cases.

Understanding Workers Compensation Settlements

As an employer, your role in a worker’s compensation settlement is minimal. All you have to do is ensure that both parties have the necessary information.

An employee may seek more compensation for the workplace injury only for the court to award them less. Keep in mind that employee protection should be your biggest concern.

Browse this page to learn more about workers’ compensation settlements.

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