A worker’s compensation settlement for your trucking accident might occur when your employer’s insurance provider agrees to cover any costs you incurred related to your injury claim. A settlement could occur before your case going trial or at any point while the trial is going on. A settlement is a contract indicating that the responsible party would pay you a predetermined amount of money for the losses you incurred due to your trucking accident. For a settlement to work, however, both parties should be amenable to negotiations and in complete agreement of the settlement.
What Settlement Payouts are Available?
Settlements are typically distributed either through a structured plan or lump sum payment. With a structured settlement plan, you would receive payments on a regular basis over time. The main advantage of this payout plan is that you won’t have to worry about the tax consequences related to receiving a huge amount of money in one go. With a lump sum payout, on the other hand, you would receive the entire settlement payout in one lump sum payment, notes one of the top trucking lawyers in Washington.
One significant disadvantage of a structured settlement payout is that there’s always the possibility that the responsible party would suddenly stop sending you payments later on. In general, this happens because they simply refuse to continue payments for some reason or if they become bankrupt. While these situations are rare, they do happen, so many individuals opt for a lump sum payout to avoid issues in the future.
Should You Settle or Not?
The laws that govern settlements for injury claims vary widely from state to state and choosing between a lump sum payout, and the structured payout could be hard because both have significant benefits and drawbacks. This is especially crucial if you’re on permanent total disability since you could continue to claim your weekly worker’s compensation benefits for decades, but if you settle your case, you won’t be eligible to receive the benefits for your specific injury anymore. This means that your settlement payout should consider the current worth of your future entitlements to those weekly benefits.
That said, make sure to work with your lawyer to make sure that you understand the options presented to you. A lawyer with ample experience in insurance claims would be able to help you determine if accepting the settlement is the best option for you. Otherwise, your lawyer would help you build a claim specific to your circumstances to make sure that you get a more accurate payout for your injury.