Workers’ Compensation Settlements: What Injured Workers Need to Know

Being injured on the job is bad enough, but trying to figure out workers’ compensation settlements can be overwhelming.

The good news? Injured workers can navigate the system with a basic understanding of how it works. The bad news? Most folks have no idea where to begin.

The truth is…

Workers’ comp settlements aren’t a one-size-fits-all. Each case is unique. But arming yourself with the right knowledge (and legal counsel) makes it much easier to manage.

In This Guide:

• What Is A Workers’ Compensation Settlement?
• How Much Can Injured Workers Expect?
• Factors That Affect Settlement Amounts
• Why Legal Help Makes A Difference
• Steps To Maximise Your Settlement

What Is A Workers’ Compensation Settlement?

Put simply, a workers’ comp settlement is an agreement between an injured employee and their employer’s insurance carrier.

It finalises the workers’ comp claim and provides payment to the injured party. In exchange, the worker agrees not to file any future claims for that particular injury.

It’s a win-win for both sides.

Settlements can take one of two forms:

• Lump sum payment – a single payment that covers all costs
• Structured settlement – payments made over time

The vast majority of workers opt for lump sum settlements. They receive the money up front and can put the injury behind them.

The problem is…

Insurance companies almost always start with a low-ball offer. Their goal is to pay out as little as possible, so their first offer is never their best offer.

That’s why working with an experienced workers comp lawyer out of Fresno or your local area can make a world of difference when it comes to your final settlement.

How Much Can Injured Workers Expect?

Settlements vary widely based on the circumstances of the injury. According to the National Safety Council, the average workers’ compensation settlement in the United States is $44,179.

But here’s the thing…

Some settlements are as low as $2,000, while others run into the hundreds of thousands of dollars. The severity of the injury is the biggest factor that determines the final amount.

The Bureau of Labor Statistics recently reported 2.6 million nonfatal workplace injuries and illnesses in 2023. That’s a ton of workers who are potentially entitled to compensation.

Factors That Affect Settlement Amounts

So what actually determines how much money ends up in your pocket? Several key factors come into play. Here’s what to look out for.

Severity Of The Injury

The bigger the injury, the bigger the settlement. This is the biggest single factor in workers’ comp cases.

A minor sprain or bruise won’t settle for the same amount as a back injury requiring surgery. The more serious the injury, the higher the potential settlement.

Injuries that lead to permanent disability command the highest settlements. This is because they affect a worker’s earning potential for the rest of their life.

Medical Expenses

Every dollar of medical treatment counts when it comes to settlements. This includes:

• Hospital and treatment bills
• Surgery and recovery costs
• Physical therapy and rehabilitation
• Ongoing medication and care expenses

Insurance companies calculate medical expenses with a fine-toothed comb. Track and save every single receipt and document all related expenses.

Lost Wages

If you’re hurt at work, you’ll need some time to recover before you can return to your job. Time is money.

Workers’ compensation covers lost wages during recovery. Settlements also factor in future lost earnings if the injury precludes a worker from returning to the same job or working at full capacity.

Body Part Injured

Injured workers in California get different amounts of money for different body parts.

Head and spinal cord injuries top the list. Hands and fingers generally settle for much less. Each state has its own schedule for valuing different types of body part injuries.

State Laws

Workers’ comp laws are set on the state level. This means they can vary significantly from state to state.

Some states are much more worker-friendly than others. The law dictates things like maximum payouts, coverage, and other factors. Understanding your local workers’ comp laws is essential to getting the biggest settlement possible.

Why Legal Help Makes A Difference

The average worker doesn’t realise one key fact…

Workers who hire a workers comp lawyer typically receive much higher settlements than those who don’t.

Why is this? It’s simple: attorneys know how to properly:

• Document injuries
• Value true compensation amount
• Negotiate with insurance companies
• Navigate complex legal procedures

Insurance adjusters do this all day, every day. They know every trick in the book for minimising payouts. An experienced attorney evens the playing field.

Think about it this way…

Insurance companies have lawyers protecting their side. Shouldn’t injured workers have someone on their side as well?

Steps To Maximise Your Settlement

If you want the best possible outcome, here are some steps to follow:

Report The Injury Immediately

Don’t delay. Report work injuries to your employer as soon as they occur. Waiting only hurts your case and can even disqualify you from benefits.

Seek Medical Treatment Right Away

See a doctor as soon as you are injured. The sooner you get treatment, the better. This creates an official medical record connecting the injury to your work.

Follow all prescribed treatments. This can’t be emphasised enough.

Document Everything

Keep detailed records of:

• Medical appointments and treatments
• Communications with your employer
• Time missed from work
• How the injury affects your daily life
• All expenses related to the injury

Documentation is key in workers’ comp cases.

Don’t Accept The First Offer

Repeat after me…

The first settlement offer from an insurance company is almost never fair. It’s a starting point for negotiation. Settling too quickly almost always means leaving money on the table.

Get Legal Help

Consulting with a workers comp lawyer is free in most cases. The vast majority of attorneys work on contingency. That means they only get paid if you win your case.

The legal assistance they provide can dramatically increase your settlement amount while removing a ton of stress from the process.

Settlement Mistakes To Avoid

Injured workers often unintentionally sabotage their own cases without even realising it. Here are some common mistakes to avoid:

• Giving recorded statements to insurance companies without legal advice
• Posting on social media about activities that contradict injury claims
• Missing medical appointments or ignoring treatment plans
• Returning to work too soon before properly healed
• Settling too quickly without understanding full injury extent

All of these mistakes can decrease or eliminate potential compensation.

Pulling It All Together

Workers’ comp settlements are designed to help injured workers get back on their feet. It can be an overwhelming process. A basic understanding of how it all works makes a world of difference.

The important points to remember are:

• Settlement amounts vary based on injury severity, medical costs, and lost wages
• The average settlement is around $44,000 but varies widely
• Insurance companies almost always start with a low ball offer
• Legal assistance typically results in a higher settlement amount
• Document everything and never rush the process

Workplace injuries happen every day. Understanding how the workers’ comp system works helps ensure injured workers receive the compensation they deserve.

The right legal assistance can make all the difference between a meagre settlement that barely covers expenses and one that truly compensates for the full impact of the injury.