How to Figure a Worker's Compensation Settlement
With the exception of Medicare and Medicaid issues, state law typically dictates how workers' compensation protects workers and pays compensation when there is an injury. Because of the risks involved to both parties, as well as the costs, many workers' compensation cases settle before going into litigation or mediation. Despite the slight differences among the states, settlements are calculated in generally the same manner.
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Things You'll Need
- Incident report
- Medical records and bills
- Independent Medical Examination Report
Instructions
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Instructions
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Obtain a copy of the incident report generated at the place of work. Typically, the incident report will contain information regarding the circumstances surrounding the injury, the action that was taken and the names of people with knowledge of the event.
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Acquire witness statements from those people named in the incident report as well as others that may have knowledge of the injury. Also, witness statements from those with knowledge of how the injury has affected the worker's life will be useful in the settlement process.
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Gather all medical bills, invoices or statements as evidence of the expenses, both paid and unpaid, that have resulted from the injury. Proof of payment for any out-of-pocket expenses will be useful as well.
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Request all medical records and reports from independent medical examinations. Medical records will be used as evidence of the nature and extent of the injuries. Sometimes, the injured party is asked to undergo an independent medical examination. The information contained in the report generated by the examining physician will be necessary for settlement negotiations.
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Compute the potential settlement value by using the average annual wages, the expected time out of work and the extent of the injury. For example, a reasonable settlement for a person who is able to function at a 50 percent capacity for 6 months, and was earning $40,000 per year, may be $10,000, or 50 percent of the wages that would have been earned in six months.
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Tips & Warnings
If a workers' compensation claim is being disputed by a business or its insurer, they will typically gather as much information as possible to deny the claim. Legal representation is the best way to advocate for the side of the injured party against the business or it insurer.
Laws vary by state. An injured person seeking a workers' compensation settlement should seek the counsel of an attorney to achieve the best possible outcome.
References
Resources
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