Michigan work injury lawyer discusses how the workers’ comp settlement works, the average payout amount, legal strategy, and the redemption process.
Most people never consider what happens if they get hurt on-the-job. It can be hard thinking about unpaid medical bills and returning to work. They want to know how a workers’ comp settlement works in Michigan and if it is the best option for their situation.
We pride ourselves on getting the most amount of money for our clients. Workers’ comp is not a perfect system, so it is critical to maximize what is paid by the insurance company for settlement. This is the only way to ensure that a person can get back on his or her feet.
Many people want to know how a Michigan workers’ comp settlement works. What amount should they expect when everything is over? Is there a strategy to use? Here are some ideas that can be used to plan for the future.
How does a workers’ comp settlement work?
In Michigan, employees who are hurt while at work can settle a claim by either collecting workers’ comp lost wages and medical benefits or they can trade those benefits for a lump sum cash settlement. If the lump sum cash option is chosen then a magistrate needs to approve the settlement at a redemption hearing. Payment should be made after a 15 day appeal period expires.
What is the workman’s comp settlement process?
In Michigan, the process for a workers’ comp settlement after a work injury claim always starts with negotiation. There is no guaranteed payout or disability rating that can be relied upon. Insurance companies know the value of claims and they want to pay as little as possible. An employee makes a demand, and the insurance company makes an offer.
Watch out for low-ball settlement offers based upon medical opinions from independent medical examination (IME) doctors. Insurance companies are sophisticated entities who know the value of claims. They do not want to overpay and look for ways to limit their exposure. Do not make a settlement demand without speaking with a lawyer first as this can box you into a bad negotiating position.
When will workers’ comp offer a settlement?
In Michigan, it is common for a workers’ comp settlement to be offered when an employee reaches maximum medical improvement (MMI) or is given permanent work restrictions. Michigan law does not allow a settlement unless six months has passed from the date of injury.
Are there risks of taking a settlement vs collecting benefits?
We tell our clients there is always a risk when agreeing to a workers’ comp settlement. Sometimes it is better to collect benefits on a weekly basis until MMI. Settlement is attractive because it lets people move on with their lives, but the money paid has to make financial sense.
How does a workers’ comp settlement work if a person is disabled from their job?
The trick is getting enough money to allow a person to get back on their feet and find alternate employment. Extra money paid through a settlement can be used for other purposes and is often considered a windfall.
Social Security Disability is also a good option if a person can never return to employment.
How is a settlement calculated?
A workers’ comp settlement is calculated based upon how long a person is expected to be disabled from their job. Traditionally, the weekly comp rate is used to extrapolate a number of years to be paid. Future medical costs should also be included in the settlement amount.
Suppose a person is earning $800 per week on workers’ comp. A typical settlement could range anywhere from 1 to 5 years of these payments. This works out to be a range of $41,600 to $208,000. Future medical costs must also be calculated into this amount.
How long does a settlement take?
Our experience shows that a settlement can be negotiated within days or weeks if benefits are being paid voluntarily. Disputed claims take much longer, perhaps months or years, if litigation is required. Getting the actual settlement check should occur within 30 days.
What is the average payout amount for a settlement?
Statistics published by the Michigan Workers’ Disability Compensation Agency show the average settlement amount in 2022 was just $62,315.56. Most people are shocked to learn this fact because it does not seem like much money. Many of our clients get more with the right medical and vocational evidence.
Insurance companies know the value of workers’ comp claims and they do not want to overpay. They use defense medical opinions and biased vocational assessments to say a person can find another job. Make sure to level the playing field by hiring an experienced workers’ comp attorney.
How to choose an attorney?
An experienced Michigan workers’ comp attorney is critical to getting the highest settlement possible for your work injury. Medical and vocational evidence must be developed to show the claim has significant value. A good lawyer will be happy to answer questions and explain his or her legal strategy going forward.
How much does an attorney cost?
Most attorneys handle workers’ comp cases on contingency. This means you pay nothing unless a settlement is recovered. The fee can be as little as 15% if benefits are currently being paid voluntarily. Fees increase to 20% of the first $100,000 and 15% on the remainder if disputed and then settled.
A person will almost always get a larger Michigan workers’ comp settlement for their work injury with an experienced attorney on their side. Insurance companies only take people seriously when they know and assert their legal rights. Attorney fees are quickly made up by larger settlement amounts.
Injured while on the job? Contact our lawyers for a free consultation
To speak with an experienced attorney about your work injury claim in Michigan, call us now, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years and can help you better understand workman’s comp laws and explain to you in more detail how the workers’ comp settlement process works after a work injury . To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (844) 201-9497 for a free consultation today.
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