Workers’ comp lawyer discusses the average workers’ comp settlement amount in Michigan and how to maximize what is paid.
Helping employees who are hurt on-the-job is our specialty. We explain legal rights and how to get the most out of the workers’ comp law. This allows people to make informed decisions about their own unique situations. Many of the individuals who contact our office also want to know the average workers’ comp settlement amount in Michigan. This allows them to begin planning next steps. Here is some information about payout amounts and how to maximize what is paid.
How much is the average workers’ comp settlement amount in Michigan?
Statistics published by the Workers’ Disability Compensation Agency show the average workers’ comp settlement amount in Michigan for 2020 was $59,235.42. Most people are shocked to learn this because it does not seem like much money. This is true for a disabled employee who needs lifetime medical and restrictions.
Workers’ compensation is not a fair system and a settlement is sometimes the best option. It allows a disabled employee to get cash and move on with his or her life. Money can be used for medical treatment, education, vocational rehabilitation, transitioning to a new job, starting a business, or retirement. They are also income tax free.
What is the average workers’ comp settlement amount in Michigan based upon?
The average workers’ comp settlement amount in Michigan is based upon how much the insurance company thinks it must pay in future benefits. This includes payments for lost wages, medical treatment, and vocational rehabilitation. Unfortunately, pain and suffering are not factors that can be considered.
A good starting point for a settlement 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 negotiate a payout amount based upon several years.
Watch out for insurance companies
Watch out for insurance companies who insist on using post-injury wage earning capacity (PIWEC) to reduce the weekly comp rate. This happens when someone is considered only “partially disabled” and able to find other work. Our experience shows that insurance companies abuse this process and unfairly reduce payout offers.
It is also important to understand future medical needs. Insurance companies use so called “independent” medical examinations to say a person has fully recovered. We recommend speaking with a treating doctor to get an idea about what is truly needed. Do not let the insurance company use biased medical opinions to reduce what needs to be paid.
Hire a work injury attorney who can negotiate a fair payout amount.
Hiring an experienced attorney usually results in a larger payout amount. Understanding legal and medical issues is the key to a successful negotiation. Attorney fees are capped at 10% of the payout and increase by only $1,250.00 if the claim is disputed.
Watch out for insurance companies who make low-ball payout offers and want to take advantage of financial distress. Please call us for a free telephone consultation and let us help.
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 35 years. Call (844) 316-8033 for a free consultation today.