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Workers' Compensation Settlements

Updated 03:15 PM EST, Wed March 6, 2019

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Workers’ Comp Settlement Process

Workers’ compensation is an important insurance that provides benefits to employees for work-related injuries and illnesses.
 
Without it, business owners could potentially have to pay out of pocket if their employees are hurt or sick from work-related injuries or illnesses. If a work-related injury or illness leads to a lawsuit, it could be financially devastating for business owners.
 
If one of your employees is injured, they are not required to accept the insurance company’s offer on a workers’ compensation claim. Instead, your employee can pursue a monetary settlement with the help of an attorney of their choice.
 
The workers’ comp settlement process is an alternative to the insurance company’s offer. If an employee is injured on the job, workers’ compensation insurance can provide the following:
 
  • Hospital bill coverage
  • Disability payments
  • Coverage for missed wages
These coverages are provided to the employee if they accept the workman’s comp benefits. When a claim is filed with the insurance company, the employee has different options they can take:
 
  • Accept the workers’ compensation offer
  • Pursue a lump sum settlement
  • Negotiate a structured workers’ comp settlement

More About the Workers’ Comp Settlement Process

If your injured or sick employee chooses to pursue a workers’ compensation settlement, the process depends on the state your business is in. The settlement process varies from state to state and employee to employee. Before a settlement is reached, the employee and the attorney calculates what they believe the payout should be.
 
A workers’ compensation settlement likely covers the following things:
 
  • State workers’ comp laws and relevant restrictions. Each state has its own respective workers’ comp laws that dictate the weekly pay.
  • Attorney fees. The cost to hire an attorney to represent the employee in the settlement process can be covered.
  • Disability payments. Disability payments vary depending on the severity of the injury.
  • Hospital bills, ambulance rides, etc. Charges from the hospital and ambulance can be included in the settlement cost.
  • Surgery, pain and suffering, future payments. A settlement can cover the employee’s costs of surgery, as well as future medical payments.
  • Lost wages and future wage loss. If your employee is injured or sick from a work-related cause, they weren’t able to work during their recovery. Depending on the severity of their injury or illness, it could impact their work schedule in the future.
After the payout is calculated and finalized, the employee and attorney will contact the insurance company. As the business owner, you want to make the settlement process as smooth as possible. There’s a lot to be aware of, but we’re here to help you. The Hartford has been in business for over 200 years. We’ve been helping protect businesses with our various insurance products, like workers’ compensation, for years. Our team has experience with liability and the settlement process.
 
Here a few things you can do as the business owner to ensure a smooth settlement process.
 
  • Provide your employee with the necessary paperwork and contact information for the insurance company. Keep the employee updated on the company’s work injury policies.
  • Despite being a potentially stressful situation, remain calm. Reach out to your insurance company if you have any questions.

How Much Does Workers’ Comp Pay?

Workers’ comp settlements can be settled in different ways. This includes either a lump sum payment or a structured payment plan. If you and your employee don’t settle or aren’t willing to negotiate, it could lead to a trial. This is sometimes referred to as a workers’ comp hearing or workers’ compensation lawsuit.
 
During a trial, a workers’ comp judge evaluates the case and determines a fair settlement. When the amount is decided, the insurance company pays the claim and the settlement is finished.
 
The amount workers’ comp insurance pays is dependent on the injury, the type of job being done when your employee was injured, the risk associated with the job, and the state your business operates in. Because different factors can impact the pay, it’s important to work with an experienced insurance company. At The Hartford, our team of specialists is ready to help you navigate these uncertain waters.
 

How The Hartford Helps When an Employee is Hurt on the Job

The Hartford has been helping businesses in all industries navigate the workers’ compensation settlement process for years. We’re here to answer your questions. And if your employee gets hurt or sick while on the job, our specialists can help walk you through the claims and settlement process.
 
Find out more about workers’ compensation insurance. Get a quote today. Or if you’d prefer to speak to one of our insurance specialists, please call 855-829-1683.
 

Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including issuing company, Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.