Workers’ Compensation settlements are payments made to employees for work-related injuries. The purpose of this settlement is to provide financial compensation to injured employees for their medical expenses, lost wages, and any other costs resulting from a work-related injury or illness. Employers must provide workers’ compensation benefits in Missouri through an insurance carrier. Compensation generally includes amounts for medical expenses, lost wages, disability, and death benefits.
Types of Workers Comp Settlements
There are two types of workers comp settlement.
- Lump-sum settlements: It is a one-time payment to cover all medical expenses of the workers’ injuries and any other losses. The injured worker will receive a large lump-sum amount in a single payment that would resolve and close the claim.
- Structured settlements: This type of settlement involves periodic payments to the workers from the employer over a specified period of time. The frequency of payment could be set to monthly, bi-weekly, or weekly.
Both types of settlement options come with their own good and not-so-good factors. The lump-sum settlement provides immediate relief from financial suffering but not be the best option in all cases. Sometimes, some underlying medical conditions arise after a few weeks of the injury or accident. In those cases, it will be hard for you to navigate your financial situation.
The structured payments plan can be a more stable option as a source of income. It works best in cases of long-term medical needs or injury caused by a permanent disability. But sometimes, the total amount may be less than the amount that would have been received in a lump-sum settlement.