Can I Get a Lump Sum Workers’ Compensation Settlement?

September 8, 2025 | Personal Injury

Can I Get a Lump Sum Workers’ Compensation Settlement?

You can get a lump sum workers’ compensation settlement in Pennsylvania, including Harrisburg. Both you and your employer’s workers’ compensation insurance company must agree to settle your claim for a single one-time payment instead of ongoing workers’ compensation benefits.

A lump sum workers’ compensation settlement replaces future workers’ compensation payments, such as wage loss, medical expenses, and specific loss benefits, finalizing your workers’ compensation claim upon court approval. 

This blog discusses the process of obtaining a lump sum workers’ compensation settlement, including the pros and cons of lump sum payments.

What Is a Lump Sum Settlement in a Pennsylvania Workers’ Compensation Claim?

Pennsylvania workers’ compensation law allows parties to settle claims in several ways. A lump sum settlement is a one-time payment resolving your workers’ compensation claim. You receive all benefits owed at once instead of receiving weekly or periodic benefits.

Once you accept a lump sum settlement offer and it is approved by a Workers’ Compensation Judge, your claim is permanently closed. You cannot reopen your case regardless of any worsening condition or future medical needs. 

Because of the finality of a lump sum settlement, it is wise to work with an attorney to ensure the settlement is in your best interest.

How Does the Lump Sum Settlement Process Work in a Pennsylvania Workers’ Compensation Case?

After you file a workers’ compensation claim, the insurance company and your attorney work to resolve the case. The lump sum settlement process includes four primary steps:

Negotiation

Your attorney negotiates a settlement amount with the workers’ compensation insurance provider. Negotiation may involve mediation or arbitration, especially if disputes arise. Before negotiations begin, your attorney will work with you and your physicians to gather evidence proving the extent of your permanent impairment and future losses. 

Your attorney may engage medical specialists and other expert witnesses, depending on the complexity of your injuries.

Compromise and Release Agreement

The settlement terms are documented in a Compromise and Release Agreement. A lump sum settlement can include all benefits you would be entitled to receive. 

Benefits that can be included in a settlement agreement are:

  • Wage loss, including total permanent disability or partial permanent disability payments
  • Ongoing medical treatment related to your work injury
  • Specific loss benefits, such as the loss of a limb

You can enter a settlement agreement for wage loss only, meaning you would continue to receive medical benefits. If you anticipate requiring long-term medical treatment, this option might be better for you.

Both parties must sign the agreement. It is crucial for an attorney to review the agreement to ensure that the terms and conditions are those you agreed to as part of your workers’ compensation settlement.

Court Approval

For a lump sum workers’ compensation settlement, you must obtain court approval. The Compromise & Release Agreement is submitted to the court, and a hearing is scheduled before a Pennsylvania Workers’ Compensation Judge. 

Generally, the worker testifies at the hearing that they understand the terms of settlement and the consequences of signing the agreement.

Payment

Upon receiving judicial approval, the workers’ compensation insurance company issues the lump sum payment, and the case is closed. No further benefits related to the injury that is subject to the settlement can be claimed.

Pros & Cons of a Workers’ Compensation Lump Sum Settlement

As with all settlement agreements, there are pros and cons to consider. 

Pros of a Workers’ Compensation Lump Sum Settlement

Reasons to consider a lump sum settlement for a workers’ compensation claim include:

  • You receive immediate access to all funds you are entitled to receive, providing financial flexibility.
  • You avoid the unpredictability of waiting for a weekly benefit.
  • You do not need to worry about disputes regarding future benefits.

A lump sum settlement can offer injured workers financial stability and peace of mind. By receiving all benefits upfront, you gain flexibility in managing expenses and eliminate the uncertainty of ongoing payments or disputes over future benefits.

Cons of a Workers’ Compensation Lump Sum Settlement

Despite the benefits, there are important drawbacks to consider before accepting a lump sum:

  • You become responsible for all future medical costs if your condition worsens or new treatment is needed.
  • Settling too quickly could mean receiving less than your claim is truly worth.
  • Insurance companies often push for the lowest possible settlement, which may not reflect your long-term needs.

Because of these risks, it is essential to understand the full scope of your injury and consult with an attorney before agreeing to a settlement.

Get Help with a Workers’ Compensation Settlement in Harrisburg, PA

Workers’ compensation providers do not always treat injured workers fairly. If you are injured on the job, get help with your claim from an experienced workers’ compensation lawyer. Call Marzzacco Niven & Associates for a free consultation.

If you’ve been injured or need a lawyer to help you with your case, please contact Marzzacco Niven & Associates at the nearest location to schedule a free consultation today:

Marzzacco Niven & Associates Harrisburg
945 East Park Drive, Suite 103 Harrisburg, PA 17111
(717) 231-1640

Marzzacco Niven & Associates York
2550 Kingston Road, Suite 210A York, PA 17401
(717) 995-8998

Marzzacco Niven & Associates Wyomissing
833 N. Park Road, Suite 103, Room A Wyomissing, PA 19610
(717) 388-2325

Marzzacco Niven & Associates Chambersburg
79 St. Paul Drive, Suite 1 Chambersburg, PA 17201
(717) 388-2378

Marzzacco Niven & Associates Carlisle
354 Alexander Springs Road Carlisle, PA 17015
(717) 995-8732

Marzzacco Niven & Associates Carbondale
30 Lincoln Avenue, Suite 101 Carbondale, PA 18407
(717) 995-8810

Marzzacco Niven & Associates Lancaster
2173 Embassy Drive, Ste 123, Lancaster Pa 17603
(717) 616-2954

Marzzacco Niven & Associates Lebanon
937 Willow Street, Suite D Lebanon, PA 17042-1140
(717) 995-8963