Calculating a workers’ compensation settlement involves two key components: the indemnity benefits and the value of future medical expenses. These elements are considered on a case-by-case basis, ensuring each settlement reflects the unique circumstances of the claim.
Components of Workers’ Compensation Settlement
Indemnity Benefits
The indemnity benefits typically include future payments, though in some contested cases, back owed benefits may also be considered. These benefits could last for the injured worker’s lifetime or be limited by state-specific duration rules. It's common to reduce future benefits to present value, based on the principle that future payments, if made today, should be discounted. Some states may bypass this calculation if periodic cost of living adjustments are applicable.
Future Medical Expenses
Assessing future medical expenses usually requires the expertise of a medical professional specializing in workers’ compensation cases. Occasionally, experienced legal counsel may also handle these calculations. Employers or their insurance carriers often initiate settlement discussions, either by requesting a demand or proposing a settlement offer. Such offers typically serve as a preliminary gauge of the claim’s potential value.
Factors Influencing Settlement Value
The valuation process is inherently imprecise due to various intangible factors that either increase or decrease the claim's value. Considering settlement? Consulting with an experienced professional is advisable, as their negotiation skills can be pivotal in reaching a favorable outcome.
Additional Considerations
Arriving at a settlement value is not an exact science. The variability in case specifics means that retaining someone seasoned in workers’ compensation settlements can significantly benefit an injured worker. External resources, such as legal guides or professional consultations, may be valuable for deeper insights into this complex process.
