Workers Compensation Settlements and Long-Term Disability Insurance

Published: 01st July 2010
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Workers compensation settlements can occur when an employee suffers a permanent injury caused by a work accident. When a disability rating is determined following a medical examination, the employer's workers' compensation insurer may offer a lump sum settlement to the injured worker for their claim.

A workers compensation settlement would include for permanent disability damages. The amount of the lump sum payment may be considerable depending on the disability rating, age of the employee, and occupation involved. However, for receipt of the lump sum payment, the injured employee must sign a release document to close all claims. If the worker's injury is aggravated or worsens, the employ would not be responsible for future compensation payments or medical treatment.

Injured workers should carefully review their options and the terms of the proposed settlement before signing the release of claim document. Once signed, the claim is closed forever. The injured worker may receive significant benefit by having a workers compensation attorney manage and negotiate their claim.

Individuals or groups of individuals can purchase their own private short-term or long-term disability insurance for additional protection. Workers may also be covered by employer disability plans, but workers' compensation insurance is the primary form of coverage for a work injury. However, if the employee's disabling injury occurred on the job, the amount the injured worker would be eligible to receive through a private disability plan would be offset by the workers compensation benefits.

If an employee wishes to purchase additional coverage or is self-employed, it makes sense to consider purchasing private short-term and long-term disability insurance. It can be a great benefit and protect your assets in the event of a disabling injury.

It is important that employees understand workers compensation insurance. Learn more about workers compensation claims and workers compensation settlements at

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