Is A Structured Settlement Right For Your Worker's Compensation Claim?
The case of Willis v. Long Construction Co. involved a worker, Henry Willis, who suffered a disabling industrial injury while employed by Long Construction Company. The main issues in the case were whether Willis was entitled to a lump-sum payment of his future benefits and whether these benefits should be discounted to present value.
Court Ruling
The court ruled that Willis was entitled to a lump-sum payment of his future benefits. However, the court also held that the State Compensation Insurance Fund could not reduce the lump-sum entitlement to present value based on the statutes in question1. This decision emphasized the importance of providing full compensation to injured workers without discounting future benefits.
Trend Towards Structured Settlements in Workers' Compensation Cases
Structured Settlements Overview Structured settlements are financial agreements where the injured party receives periodic payments over time instead of a single lump-sum payment. These settlements are often used in workers' compensation cases to provide a steady, tax-free income that can cover medical bills, lost wages, and future treatments.
Benefits of Structured Settlements
Financial Stability: Structured settlements offer long-term financial stability by providing regular payments, which can help injured workers manage their expenses more effectively.
Tax Advantages: Payments from structured settlements are typically tax-free, which can be a significant benefit for the injured party.
Risk Management: Employers and insurers can transfer the risk associated with long-term disability claims to life insurance companies that issue structured settlement annuities.
Recent Trends There has been a growing trend towards using structured settlements in workers' compensation cases. This approach is favored because it provides a predictable cost for employers and insurers while ensuring that injured workers receive continuous financial support. Additionally, structured settlements can be tailored to meet the specific needs of the claimant, such as covering medical expenses, rehabilitation costs, and living expenses.
How to Get a Structured Settlement for Worker's Compensation Injuries
Consult with a Workers' Compensation Lawyer: The first step is to consult with a lawyer who specializes in workers' compensation cases. They can help you understand your rights and guide you through the process of negotiating a structured settlement.
Evaluate Your Needs: Work with your lawyer to evaluate your financial needs, including medical expenses, lost wages, and future treatments. This will help determine the appropriate amount and structure of the settlement.
Negotiate with the Insurer: Your lawyer will negotiate with the workers' compensation insurer to reach an agreement on the structured settlement. This may involve multiple rounds of negotiation to ensure that the settlement meets your needs.
Draft the Settlement Agreement: Once an agreement is reached, your lawyer will draft the settlement agreement, which will outline the terms of the structured settlement, including the payment schedule and any other relevant details.
Court Approval: In some cases, the structured settlement may require court approval to ensure that it is fair and in the best interest of the injured worker. Your lawyer will handle the necessary legal steps to obtain this approval.
Settlement Funding: The structured settlement is typically funded by an annuity purchased from a life insurance company. The insurer will make the periodic payments to the injured worker according to the agreed-upon schedule.
Conclusion The Willis v. Long Construction Co. case highlights the importance of fair compensation for injured workers. The trend towards structured settlements in workers' compensation cases reflects a shift towards providing long-term financial security and stability for injured employees. By offering periodic payments, structured settlements can help injured workers manage their financial needs more effectively while providing employers and insurers with a predictable cost structure.