Suffering a workplace injury can be overwhelming, and dealing with the workers’ compensation process adds another layer of stress. If you’re offered a settlement, you may feel tempted to accept it quickly to move on with your life. However, settling too early can have serious financial and medical consequences. At Laguna Law Firm, we’ve seen injured workers make this mistake, and we want to ensure you understand the risks before accepting a settlement offer.
The Risks of Settling Your Workers’ Comp Case Too Soon
1. You May Underestimate Future Medical Costs
One of the biggest mistakes injured workers make is settling before they fully understand the extent of their medical needs. Workers’ compensation covers medical expenses, but once you accept a settlement, the insurance company is no longer responsible for future treatment costs. If your condition worsens, you’ll be stuck paying out of pocket.
2. Lost Wage Compensation Could Fall Short
Workers’ compensation benefits include temporary and permanent disability payments. If you settle too soon, you may not receive the full amount of wage loss benefits you’re entitled to. Injuries can take months or years to heal, and returning to work might not be as easy as you expect. By accepting an early settlement, you could be leaving money on the table that would help cover lost income.
3. You Might Miss Out on Additional Benefits
Depending on the severity of your injury, you could qualify for vocational rehabilitation or other benefits under California workers’ compensation law. Settling prematurely may mean forfeiting these additional benefits that could help you transition back into the workforce or retrain for a new career.
4. Permanent Disability Ratings Can Change
If your injury results in permanent disability, your compensation will be based on your disability rating. Accepting a settlement before reaching maximum medical improvement (MMI) could result in a lower disability rating, reducing your overall settlement amount. Waiting until your doctor provides a final evaluation ensures that your settlement reflects the true extent of your injury.
5. You Cannot Reopen a Settled Claim
Once you settle a workers’ compensation claim in California, it is usually final. With a lump-sum settlement (Compromise and Release), you waive your right to future benefits, even if new medical issues arise. If you settle too soon and later realize that your injury is worse than expected, you cannot go back and ask for more money.
How to Avoid Settling Too Early
1. Wait Until You Reach Maximum Medical Improvement (MMI)
Your doctor should determine when you have reached MMI, meaning your condition has stabilized, and no significant improvement is expected. Settling before this point can result in undervaluing your claim.
2. Consult a Workers’ Compensation Lawyer
Insurance companies want to settle claims for as little as possible. An experienced workers’ compensation attorney at Laguna Law Firm can review your case, negotiate on your behalf, and ensure you receive fair compensation.
3. Understand the Full Value of Your Claim
A proper settlement should cover medical expenses, lost wages, permanent disability, and any additional benefits you may qualify for. Without a legal expert, you may not fully grasp the value of your claim.
4. Consider Future Medical Needs
If your injury requires ongoing treatment, make sure your settlement accounts for future medical expenses. A structured settlement or keeping medical benefits open might be a better option.
What to Do If You’ve Already Settled Too Early
If you have already accepted a settlement and now realize it wasn’t enough, you may have limited options. In rare cases, a settlement may be set aside if there was fraud, coercion, or a mistake. Consulting with a workers’ compensation attorney immediately can help determine if any legal remedies are available to you.
Speak with a California Workers’ Compensation Lawyer Before Settling
Before accepting any settlement, speak with an experienced workers’ compensation lawyer who understands California law. At Laguna Law Firm, we fight to protect injured workers and ensure they receive the full benefits they deserve.
Don’t risk settling too early and losing out on the compensation you need for your recovery. Call Laguna Law Firm at (949) 594-2090 or visit lagunalawfirm.com for a free consultation. Let us help you secure the best possible outcome for your workers’ compensation claim.
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