Lump Sum Settlements

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If you were injured on the job, you may have heard of something called a "Lump Sum Settlement" – also known as a "Compromise and Release."

Note: Please know that when you sign to accept a lump sum settlement, this is a one-time payment. If you accept a lump sum, you can't go back for more money. Your employer's insurance company doesn't owe you another cent. What's more, the insurance company will almost always offer much less than you deserve.

That's why it's important to consult with an attorney before you agree to a lump sum settlement. Our legal consultations are free and there's no obligation to use our services. Call us at 1-866-943-3427 or fill out a simple online legal consultation.

Frequently Asked Questions
Are you in danger of losing your Pennsylvania workers' compensation payments?
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You can lose your workers' compensation payments if you:

  • Refuse to submit to reasonable medical services
  • Refuse to comply with an order to have a medical exam
  • Are convicted of a crime and are put in jail
  • Fail to complete and return an employee verification form to the workers' compensation insurance company within 30 days

Your lost wage payments can also be stopped:

  • By a judge appointed to review the facts of your workers' compensation claim
  • If you have fully recovered from your injury and have signed a "Final Receipt" – signing this receipt means you agreed to stop your benefits
  • If you are assigned to a modified, or "light duty," position; you may still be able to collect partial disability payments if the job pays less than what you made before your injury
  • If you agree to receive a lump sum of money, also known as a "Compromise and Release"
  • When you return to work and are making the same, or more than, you made before your injury
  • The 500-week period of partial disability is over
  • The time you had to collect specific loss payments ends; this time period is set based on the nature of the injury
  • If you die from causes not related to your work injury

If you think you're in danger of losing your workers' compensation benefits and you don't already have an attorney, you should contact one right away. We offer a no obligation, free legal evaluation.

What is a Lump Sum Settlement?

Under Pennsylvania worker's compensation, if you have been off work for more than 4 months due to a work-related injury – and you're currently receiving workers' compensation – you may be able to settle with the insurance company for a lump sum.

A lump sum settlement is a one-time payment that can replace your weekly workers' compensation checks, your medical bills, or both. You can accept a lump sum settlement for both your lost wages and medical expenses. However, a lump sum settlement amount cannot be more than your weekly workers' compensation benefits mutiplied by 500 weeks.

Accepting a lump sum settlement for your medical expenses can be tricky. If you accept a lump sum payment for your future medical care, you will not receive any more money for your medical treatment after these funds are spent.

Remember: If you agree to a lump sum settlement, you won't receive another penny from Pennsylvania workers' compensation. Before agreeing to a lump sum settlement, it's important to make sure that the offer is fair and that it's a good idea for you. You should hire an experienced attorney to help negotiate with the insurance company, because the insurance company will nearly always offer much less than you should receive.

Is a Lump Sum Settlement Right For You?

You may want to settle for a lump sum of money if:

  • You have stopped making progress in your recovery – and your doctor believes you will not continue to recover
  • You are tired of the workers' compensation hassle and want to move on with your life

If you're thinking about a lump sum settlement, you should take a good look at your medical costs and what they may be in the future.

  • Will you need another surgery?
  • Will you be unable to work for years to come?
  • Will the settlement be enough money to give you financial security?
  • Are your injuries likely to get worse or lead to other conditions, such as arthritis?
  • Is it worth more than the hassle of dealing with the insurance company?

Be sure to think about these questions, and consult an attorney to see if a lump sum settlement is in your best interest. An experienced attorney can best calculate possible medical expenses you may encounter down the road.