After a workplace injury, the last thing you want is a drawn-out legal battle or months of back-and-forth with the insurance company. You just want to move on with your life, and a lump-sum settlement sounds like the way to do it.
If you’re wondering if you can get a one-time payment for your work injury in California, the short answer is yes. Here is what you should know.
Types of workers’ compensation settlements
There are two main ways to settle your workers’ compensation case in California:
- Stipulations with request for award (stips) – Think of it as a structured payment plan where you and the insurance company agree on how much permanent disability you’re entitled to. Based on that, you’ll receive ongoing payments, usually weekly, over a set period.
- Compromise and Release (C&R)- This is a lump sum payment to resolve your claim.
It’s worth noting that with stips, the insurance company continues to cover future medical treatment for your injury as long as it’s deemed necessary and related to the original claim. However, when you opt for a lump sum, you give up your right to have the insurance company pay for any more treatment down the road, even if your condition worsens.
Make an informed decision
The better choice between structured payments and a lump sum settlement depends on your health, financial situation and whether you’re comfortable managing your future care. Stips may offer more peace of mind if you’re unsure what kind of treatment you’ll need going forward. However, if you’re ready to move on and want more control over your payout, a lump sum might be ideal.
It helps to seek qualified legal guidance to understand your rights and know what you’re giving up if you’re considering a lump sum. Remember, this isn’t just about getting a check; it’s about protecting your health, your income and your future well-being. Talk it through with someone who understands how the system works to make decisions in your best interests.
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