Types of Workers' Compensation Settlements
Pasadena recognizes two primary types of workers’ compensation settlements. A Stipulated Award involves an agreement between you and the insurance carrier about the value of your permanent disability, with payments typically made over time according to a schedule. This type of settlement allows you to keep your medical treatment open, meaning the insurance company continues to pay for necessary medical care related to your injury even after the settlement.
In contrast, a Compromise and Release (C&R) settlement provides a lump-sum payment that closes out your entire claim, including future medical treatment. Once you sign a C&R agreement, the insurance carrier has no further obligations to you, and you cannot reopen your claim later, even if your condition worsens or you require additional surgery. This finality makes it critical to carefully evaluate whether a C&R settlement adequately compensates you for all future needs.
Factors That Affect Settlement Value
Multiple factors influence the value of your workers’ comp settlement in Pasadena, including the severity and permanence of your injuries, with serious injuries that result in permanent disability warranting higher settlements. Your age and occupation also matter significantly; younger workers who face decades of reduced earning capacity due to injury typically receive higher settlements than those near retirement. Your average weekly wage before the injury affects the calculation, as does your ability to return to work in any capacity.
The extent of future medical treatment you may require is another critical factor. If your injury needs ongoing care, multiple surgeries, or permanent medical management, this substantially increases settlement value. The insurance company also considers the strength of your case—whether liability is clear, whether you have strong medical evidence, and whether any disputed issues could affect the outcome if the case proceeds to trial.
Why Is an Attorney Needed for Settlement Negotiations
Insurance companies have experienced adjusters and attorneys working to minimize what they pay on claims. They may offer settlements that sound substantial but actually fall far short of what you deserve, especially when considering future medical needs and lost earning capacity.
An experienced Pasadena workers’ compensation attorney understands how to value your claim by consulting medical experts to project future treatment costs. They also calculate the full extent of your permanent disability and identify all benefits you are entitled to receive.
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