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What should you expect from a workers’ compensation settlement?

In Pennsylvania, workers’ compensation settlements are more formally known as compromise and release agreements. These compromise and release agreements usually make the plaintiff agree to give up all workers’ compensation rights in exchange for a lump sum payout.

Most of the time, settlements for workers’ compensation are paid out in one large payment, which may be helpful to those who need to quickly settle bills or take care of other expenses. However, you should be cautious about taking a settlement that does not offer enough compensation or cover all your financial needs.

What is a workers’ compensation settlement based on?

The amount of money you will get through a settlement is determined based on several factors. Those factors may include:

  • Your age
  • Your health
  • Your education
  • The level of impairment you’ve suffered
  • Any potential future medical needs
  • Your average weekly wage
  • Life expectancy

These factors can help you figure out exactly how much compensation is fair.

Do you have to settle a workers’ compensation claim?

No. You don’t have to settle a workers’ compensation claim, and that’s something that you need to be aware of when you speak with anyone about your claim. The reality is that settling could be harmful if you don’t yet know the full extent of your injuries or how they will affect you or your family in the future. Remember, a judge cannot order a lump-sum settlement, and your employer can’t force you to settle. It’s up to you and your legal team to determine if a settlement is right for you or if you would like to go through traditional means of accepting workers’ compensation until you receive your full benefits.

How does a workers’ compensation policy usually pay out to victims?

Workers’ compensation benefits are normally paid out in small sums over time. If a lump sum settlement would work better for you, then that’s something that you may want to look into. Taking a lump sum isn’t necessarily worth more or less, but you do have to be cautious that the agreement is in your favor.


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