How to get an advance payment from workers comp

Michigan workers comp lawyer explains how you can get an advance payment from the insurance company without settling your case.

A little known provision in Michigan law allows a person to petition a workers comp magistrate for an advance lump sum payment. Only individuals who are currently receiving workers comp benefits will qualify. This is not a loan but rather an advance on future wage loss benefits.

How to get an advance payment on workers comp benefits

A magistrate can find special circumstances that require an advance payment on future workers comp benefits. You get a lump sum advance payment and your wage loss benefits are reduced to pay the insurance company back. The insurance company is allowed 10% interest per year. How much you can receive and when you pay the insurance company back is up to the magistrate.

What constitutes special circumstances is a complicated issue.  A workers comp magistrate must consider your best interests and weigh them against the rights of the insurance company.  It has been found that paying off debt is not sufficient to require the payment of an advance payment. Special circumstances could include a situation where you need a new car to look for work or you have a possible business venture that has a reasonable chance of success.

How a workers comp settlement differs

A workers comp settlement allows you to trade future benefits for a lump sum payment.  This is different from an advance payment because you are giving up all your rights to workers comp.  An advance payment does not require that you give up your claim to future wage loss or medical treatment. Speak with an experienced workers comp attorney to find out if a workers comp settlement or advance payment is right for you.

We recently requested a small advance payment for a client in Southfield, MI. This resulted in a significant workers comp settlement.

Get help from an experienced workers comp lawyer

Insurance companies will often oppose an advance payment because there is a possibility that you will recover before it can be paid back.  Some insurance companies will see this request and make a low settlement offer thinking you are in financial distress. It is important to speak with an experienced workers comp lawyer who can evaluate your situation and advise you on the best course of action.

To speak with one of our workers comp lawyers, call (855) 221-2667 for a free consultation. There is no fee unless workers comp benefits are recovered for you.

Alex Berman is the founder of the law firm. He’s been representing injured and disabled workers exclusively for more than 30 years.  Alex has helped countless people obtain workers comp benefits and never charges a fee to review a case.

Related information:

Video: Injured at work? Advice from a Michigan workers comp lawyer

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