January 19, 2018

Workers’ Compensation

Workers’ compensation, also known as workers comp, is a common form of insurance utilized by employers in the United States. The intended purpose of this insurance is to provide lost-wage and medical benefits for workers who are injured during the course of employment. Injuries on the job would require an employee to be compensated for lost time since they would be in no condition to perform their duties either on a part, or full-time, basis.

Settlements for claims dealing with workers compensation will generally include:

    1. Payments to the injured party for lost wages.
    2. Compensation for economic loss.
    3. Payment or reimbursement for all approved medical expenses.

The settlement in workers comp cases should include the monetary equivalent believed to be sufficient to compensate the employee for injuries sustained. The long-term impact of injuries should also be taken into consideration. If an employee is killed on the job, dependents are eligible for death benefits, similar to life insurance. Punitive damages (intended to punish the employer for negligence) and general damages for pain and suffering are generally not available in workers comp plans. Payments to the claimant for lost wages and economic loss are made in exchange for the surrender of the employee’s right to sue their employer for any negligence.

The workers’ compensation system is a tradeoff between employers and employees since, in order to receive benefits, you do not need to prove your injury was someone else’s fault. Workers comp was adopted in California during the second decade of the 20th century and is considered to be the nation’s oldest social insurance program.¹

Our extensive knowledge in dealing with Workers’ Comp settlements allows us to provide our clients with adequate annuities that may cover any current & future medical needs. This is vital to accurately preparing a Structured Settlement because many times things such as immediate cash or the funding of Medicare Set-Aside’s are left out, or undervalued, thus leaving the injured party liable for the difference. We will do our best to work with your attorney, the defense, the insurance company and anyone else involved to make sure this does not happen to you and your financial needs are adequately portrayed in the structure.