When to Settle a NJ Workers’ Compensation Claim
When you settle your New Jersey workers’ compensation claim with a Section 20 settlement, you receive a lump sum, and you stop receiving regular benefits like lost wage payments and medical payments.
Thus, any settlement decision should be considered carefully, especially if you’ve been relying on those payments to pay your expenses as you recover.
Here are a few signs that settlement might be advantageous.
When You Reach Maximum Medical Improvement (MMI)
Most people should wait until they reach MMI. Settling any earlier than MMI is risky because there’s always the chance you’ll need additional treatments or surgeries.
Once you’ve settled, the insurance company stops paying your medical bills, which means you’ll have to pay them out of pocket.
The costs of any medical treatment in America today could mean wiping out your entire settlement amount on a single surgery.
One alternative path would be to go for a Section 22 agreement. This type of settlement allows you and your employer’s insurer to agree on a permanent disability rating. You’ll receive your settlement in installments, and you won’t give up your right to future medical care.
While a Section 22 is usually a stronger settlement, many factors influence which type of settlement you and your qualified New Jersey workers’ compensation attorney will attempt to pursue.
When The Insurance Company is Fighting With You
If you see that your insurance company is fighting hard to terminate your benefits, or you’re starting to become embroiled in dispute after dispute over whether and when you should return to work, then it could be advantageous to settle.
After all, if your benefits get terminated, they’re just terminated. If you settle before your benefits are terminated, you walk away with a lump sum to work with. It’s not perfect, but it can be a nice compromise between continuing to fight tooth and nail for every dollar.
When the Insurance Company Offers a Fair Settlement
Sometimes, the insurance company will offer a settlement. You shouldn’t accept any offer blindly. You should have every offer you receive evaluated by a New Jersey workers’ compensation attorney to ensure that it’s fair.
Assuming the offer is fair, then you should give it serious consideration, even if you might not have otherwise pursued a settlement on your own. Rejecting the settlement could mean many battles ahead and many struggles to get your rightful benefits.
By offering a fair settlement, the insurance company is telling you that they don’t want to be on the hook for your case in the long term but that they recognize the strength of your claim. The second reality prompts them to offer; the first means they’ll fight every step of the way if you refuse.
Know the Risks and Benefits
Every workers’ compensation case is unique, with its own set of strengths and weaknesses that must be taken into consideration. It’s important to be thoughtful and prudent before making any decision. The final decision is always your own, but it’s important to seek guidance from a qualified workers’ compensation attorney.
Do you need help deciding whether to pursue or accept a settlement? Contact Talone Law to schedule a free consultation today.
See also:
Should You Settle Your NJ Workers’ Compensation Claim?
How to Tell You’re Receiving a Good Workers’ Compensation Settlement Offer in New Jersey
When is it Time to Hire a New Jersey Workers’ Compensation Lawyer?
