Frequently asked questions regarding workers comp settlements and how to calculate a fair amount.
Many claims for workers comp are eventually settled. Insurance companies want to close files and end their liability.
Even claims that are disputed can be settled. The threat of trial provides a powerful incentive for both sides to resolve their differences with a lump sum cash payment.
An experienced workers comp lawyer can negotiate a better settlement for your claim. The attorney fee is only 10% if benefits are currently being paid.
1. What are the advantages of a workers comp settlement in Michigan?
The major advantage a settlement provides is the freedom to live your life. You are trading the potential for future benefits for a lump sum cash payment. A settlement allows you to find a new job or start your own business without the insurance company looking over your shoulder. You can also choose what medical and vocational rehabilitation you want to pursue without interference.
2. How do I calculate a fair settlement amount?
The amount of settlement will depend upon several factors including age, wage earning capacity, and the cost of future medical care. Workers comp settlements are calculated by taking the weekly rate and multiplying by 52. This gives you an estimate of how much the insurance company has to pay per year. Most insurance companies will not pay more than five years for a settlement. Insurance companies treat settlements like business decisions and at some point it is cheaper for them to take a chance on trial.
3. What is the average workers comp settlement in Michigan?
All workers comp settlements in Michigan must be approved by a magistrate at a redemption hearing. The magistrate will want to hear that the injured worker understands what benefits are being given up as part of the settlement. The average redemption amount for 2012 was $61,960.62. The average in 2011 was $62,818.81.
4. How long does it take to get paid after I settle my case?
A redemption hearing can be scheduled as soon as you agree to an amount with the insurance company. The insurance company usually needs at least 10 days to get employer consent or to wait for an objection. Most magistrates will allow the parties to walk in redemptions and will schedule them for any day during the week. There is a 15 day appeal period but this can be waived. You should receive your check approximately 1-2 weeks later.
To speak with one of our workers comp lawyers in Michigan, call (855) 221-2667 for a free consultation. You never pay a fee unless successful with your case.
– Alex Berman is the founder of Michigan Workers Comp Lawyers. Hes been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.
– Photo courtesy of Creative Commons, by Dave Dugdale.