Can You Receive a Lump Sum Settlement in a Fort Lauderdale Workers’ Compensation Claim?
You were injured on the job in Fort Lauderdale, and the insurer is offering a lump-sum settlement. It sounds appealing, but before you say yes, you need to be clear on exactly what you are agreeing to. Once you sign, there’s no going back.
A lump sum settlement changes everything about your claim going forward. Our experienced Fort Lauderdale workers’ compensation lawyer explains the potential advantages and risks.
Why Some Injured Fort Lauderdale Workers Choose a Lump Sum Workers’ Comp Settlement
When on-the-job injuries in South Florida happen, you have two options in terms of getting benefits. One is to receive monthly benefits, and the other is a lump sum settlement.
Under Section 440.20 of the Florida Statutes, a settlement is known as a “washout.” It’s not an option in every case and needs to be approved by a Judge of Compensation Claims. If you are considering an offer, here is why some injured Fort Lauderdale workers choose to go this route:
- You get your money now rather than waiting on weekly benefits that the insurer can dispute, delay, or cut off at any time.
- You are no longer subject to insurer oversight, which means no more pre-authorization battles, utilization reviews, or fighting over whether your treatment is necessary.
- You can choose your own doctors going forward.
- The uncertainty of your claim is behind you, allowing you to plan your financial future without a workers’ comp case hanging over everything.
For workers who have completed treatment, have a clear prognosis, and want to move on, a well-negotiated lump-sum settlement can be the right answer.
Why a Lump Sum Settlement Is Not Always the Right Move
The permanence of a lump sum is exactly what makes it appealing. It’s also what makes it dangerous if you are not careful. Once that settlement is signed and approved, your Fort Lauderdale workers’ compensation claim is closed for good. There are no exceptions. Here is what that means in practical terms:
- If your condition gets worse next year and you need another surgery, that cost is entirely on you.
- If you accept a settlement before getting a long-term prognosis, you may be settling for far less than you need.
- If you are on Medicare or approaching eligibility, a Medicare Set-Aside arrangement may be required, reducing the amount you actually walk away with.
- As for-profit businesses, insurers often make low-ball settlement offers.
A number that sounds large in the moment can disappear quickly when you factor in future medical costs, lost earning capacity, and years of reduced income.
Considering a Lump Sum Settlement? Consult Our Experienced Fort Lauderdale Workers’ Compensation Lawyer
Are you weighing a lump sum workers’ comp settlement offer? Our experienced Fort Lauderdale workers’ compensation lawyer can review the numbers and negotiate to get the maximum amount you need to cover your costs. Call or contact the Law Offices of David M. Benenfeld, P.A., online and request a consultation at our Sunrise, Fort Lauderdale, or West Palm Beach office today.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0440/Sections/0440.20.html
cms.gov/medicare/coordination-benefits-recovery/workers-comp-set-aside-arrangements