The average worker's compensation settlement is only about $22,000, but about a third of all injured workers can get up to $100,000 when settling their case, and a small percentage can go way up from there. But what makes the difference between a small settlement and a large settlement? Is there anything you can do to get the biggest settlement possible? And could you be losing thousands of dollars on your worker's compensation claim? We're going to answer all those questions right now.
Your income plays a significant role in the size of your settlement offer. It is used to calculate the value of things like lost wages, future earning capacity, disability benefits, and job training. In New York State, your income is calculated by dividing your gross salary for the one year leading up to your accident by 52 weeks. This gives you your average weekly wage, which helps determine the value of your case.
This calculation should include all forms of financial compensation offered by your employer, such as tips, overtime, profit sharing, sick pay, and room and board. Be meticulous with this calculation and always verify how the insurance company calculated yours. Even a small error can result in your settlement being undervalued by thousands of dollars.
Permanent disability benefits typically make up the bulk of a worker's compensation settlement, so your disability rating is crucial. If your work injury leaves you with a permanent disability, your doctor will perform a physical examination to give you a rating for your disabled body parts. This rating will determine the permanent disability benefits you're entitled to for the loss of use of that particular injury.
If your doctor gives you a low disability rating, you'll get a lower settlement. Therefore, it’s essential to go to a doctor familiar with your state’s worker's compensation system. The insurance company might also have you examined by their doctor for their own opinion on your permanent disability. Once medical opinions are gathered, the insurance company will often present a low initial offer. This is where negotiation becomes crucial.
Surprisingly, the state you're located in significantly affects your settlement offer. States have different caps on the maximum weekly benefits and the number of weeks you can receive benefits. For instance, Iowa has the highest maximum weekly payment, over $2,000 per week, leading to higher average settlements. Conversely, Mississippi, with a maximum weekly payment of less than $600, results in considerably lower settlements. Understanding your state's caps can help set realistic expectations for your settlement.
If your case is being disputed by the insurance company, it may prevent you from getting a big settlement. They might still offer to settle to avoid the expense and uncertainty of a trial, but any offer will likely be low. However, if you know you have the evidence to win in court, continuing to litigate or filing an appeal can get you, on average, 34% more in benefits than accepting their initial low offer. Workers who file an appeal receive an average of about $25,000, while those who don't only receive about $19,000.
Getting leverage over the insurance company can help you secure a large settlement. If they want something from you, you can negotiate for more money. For example, they might want to avoid setting a precedent or having your case become public knowledge, or they might want to settle sooner rather than later. Sometimes, insurance companies might settle favorably without formally accepting liability, especially if avoiding a drawn-out case works in their favor.
It's common for insurance companies to provide low first offers. Accepting the first offer usually results in a lower settlement, averaging about $10,700, whereas those who negotiate receive about $26,300 on average, a 150% increase. Therefore, it pays to push back and negotiate for a better offer. Learning negotiation tactics is crucial for maximizing your settlement.
Hiring a worker's comp lawyer can significantly increase your settlement. About a third of injured workers try to settle their cases themselves and receive an average of $18,000. Those who hire a lawyer receive nearly 30% more compensation, around $23,500. Workers compensation attorneys are skilled negotiators and know how to assess the true value of your case and extract that value from the insurance company.
If you or a loved one have been injured on the job in New York State, setting up a free consultation with an experienced lawyer can help you understand your case's strength and potential value. Consultations are confidential, cost nothing, and provide crucial insights into whether you have a strong case.
If this is your first time seeking information on worker's compensation, subscribing to my channel or resources that provide up-to-date information on filing and maximizing claims is beneficial. This can be your one-stop-shop for everything you need to know about successfully filing and maximizing your claim.
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