Michigan lawyer discusses bad faith workers’ comp settlements and how to get maximum recovery.
We frequently get asked about workers’ comp settlements. This is when an insurance company offers a lump sum cash payment in exchange for giving up potential benefits. Money can be used for any purpose including medical treatment, vocational rehabilitation, paying off debt, starting a business, or retirement. It is an attractive option for those who want to get out from under the insurance company or employer. Watch out for bad faith workers’ comp settlements that do not pay enough money.
The amount paid is going to depend upon how long a person must remain off work and future medical needs. Insurance companies do not want to overpay, and they can be ruthless. Insurance companies will offer a small amount of money to people who they believe are in financial distress and cannot wait. They will also exploit people who do not understand their legal rights.
We think it is important to have medical and vocational evidence developed before settlement negotiations begin. This means speaking with a doctor about future medical needs and having a vocational plan. Timing is everything and settling too early or too late can cost real dollars. Insurance companies have very little incentive to pay a fair amount if a person has already returned to gainful employment.
Statistics published by the Workers’ Disability Compensation Agency show the average amount in Michigan for 2022 was just $62,315.56. Most people are shocked to learn this fact because it does not seem like much money. This is especially true for disabled employees who need lifetime work restrictions. More is paid when the evidence supports it.
A good starting point for a negotiation is multiplying the weekly comp rate by 52. This shows how much the insurance company might have to pay in annual wage loss benefits. Insurance companies will typically pay an amount based upon number of years. Hire an experienced workers’ comp lawyer to protect legal rights and get maximum dollars. Here are some types of bad faith workers’ comp settlements that you need to watch out for.
Bad faith workers’ comp settlements based upon independent medical examinations (IME).
Insurance companies hire doctors to perform so called “independent” medical examinations. These are usually carried out by physicians who earn big bucks testifying against injured workers and can lead into a bad faith workers’ comp settlement. These medical examinations should not be a starting point for negotiations. We recommend speaking with a treating doctor about causal relationship and future medical needs. Hire a lawyer if benefits are cut-off.
Post-injury wage earning capacity (PIWEC).
Watch out for insurance companies who insist on using post-injury wage earning capacity (PIWEC) to reduce the weekly comp rate. This usually occurs when someone is considered only “partially disabled.” Vocational counselors are hired to perform transferable skills analysis and labor market surveys. Any job that is found will be used as justification to reduce what is supposed to be paid. Our experience shows that insurance companies abuse this part of the law and come up with artificially low offers for bad faith workers’ comp settlements.
Bad faith workers’ comp settlements based upon video surveillance or activity checks.
Insurance companies routinely hire private investigators to conduct video surveillance of individuals collecting benefits. We have even seen claims adjusters makes snap decisions based upon something posted to social media. Video surveillance or activity checks should not be taken out of context and used to justify a low offer.
Injured at work? Contact our work injury attorneys for a free consultation
If you have questions about your workers’ comp settlement and wondering if the insurance company acted in bad faith, 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. Our attorneys can help you better understand workers’ comp laws and what happens after someone has been hurt on the job. 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.
Our law firm never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.
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