Lump Sum Settlements

 

New York Attorneys Knowledgeable in Workers’ Compensation Claims

 

If you have recently been approved for medical compensation and lost wages benefits by the New York Workers’ Compensation Board, your may assume that you are only entitled to the weekly wages that are commonly available. However, the law also provides that claimants may be entitled to receive their benefits in a lump sum settlement under certain conditions. At the Law Offices of Joseph A. Romano, ourworkers’ compensation lawyers have over three decades of experience helping New York employees understand lump sum settlements. We can help you determine which form of payment is suited to your needs. Our services have been provided to workers across the state, including in White Plains and elsewhere in Westchester County, as well as Riverhead, New City, and Poughkeepsie.

Lump Sum Settlements

 

In New York, someone who is hurt on the job and is pursuing workers’ compensation benefits may be entitled to fully settle a case and obtain a lump sum settlement under Section 32 of the state workers’ compensation law. Most commonly, employers and insurance carriers will be inclined to agree to such settlements when an employee is determined to have a permanent and partial disability. This is because, with a permanent and partial disability, employees are often entitled to receive reimbursement for medical care for as long as it is needed, possibly the rest of their lives. This is a significant concern for insurance carriers because it could result in continued payments for decades to come.

 

In such circumstances, the employer or insurance carrier may offer to settle your workers’ compensation case for a lump sum settlement. This is one large payment that you receive for future lost wages and medical expenses, but it is a final payment. This means if your condition or needs change, you will not be entitled to additional compensation for your disability.

 

The amount of a lump sum settlement can vary, but typically it is equivalent to five to six years’ worth of lost income benefits, or an amount equivalent to the maximum period that a claimant can obtain lost income benefits. It is important that you speak with a qualified workers’ compensation attorney to determine whether such an amount would accurately cover your anticipated needs.

 

It is wise for workers’ compensation recipients to consider the option of a lump sum settlement very carefully. Lump sums can be a good deal for some individuals, since they offer an opportunity to collect a large amount of money at once and avoid future time in court. This can reduce the mental toll of constantly fighting with insurance companies over reimbursement of medical expenses.

 

However, lump sum settlements are not the best choice for all claimants. If you are suffering from a medical condition or injury that is unpredictable, or could result in significant complications down the road, you may wish to avoid setting a firm and final number on the amount of medical compensation you will receive, for it could leave you on the hook for outstanding medical bills in the years ahead.