What Is the Average Settlement for a Workers’ Compensation Claim?
Most workers in Alabama are covered by workers’ compensation insurance. If they are injured on the job, they may be entitled to benefits under the Alabama Workers’ Compensation Act. Knowing the types of benefits and compensation you could receive for a workers’ compensation claim can help you understand what we consider when determining the average settlement for workers’ compensation claims in Birmingham.
Types of Workers’ Compensation Benefits Available for Injured Workers
Injured employees can receive several benefits through workers’ comp. The benefits are designed to help the worker return to work after an injury. Therefore, you could receive:
- Medical benefits: The workers’ compensation insurance provider pays for necessary and reasonable medical bills, including doctor’s visits, surgeries, physical therapy, medications, etc.
- Wage loss benefits: If you cannot work because of your injuries, you can receive temporary loss wage benefits. The benefits are based on two-thirds of your average weekly wages before the injury, subject to state maximum amounts.
- Mileage and travel expenses: You may be reimbursed for the mileage to and from medical appointments.
- Rehabilitation and vocational training: If your injuries prevent you from returning to your previous job, you may receive additional training and rehabilitation to prepare you to hold another job.
- Permanent disability: If your injuries cause permanent impairment or disability, you may be entitled to receive ongoing disability payments or a lump sum settlement.
Workers’ compensation also pays surviving family members death benefits when a work injury or occupational illness causes their death. Death benefits may include compensation for loss of income and burial expenses.
What Factors Impact the Average Settlement for a Workers’ Compensation Claim in Alabama?
A workers’ comp settlement can vary from a few thousand dollars to millions of dollars. It depends on the factors of the specific case. Factors that could impact how much your workers’ compensation settlement is worth may include:
- The nature of your work injury: The types of injuries you sustain at work and the severity of impairments and disabilities impact the settlement value of a workers’ comp claim. Generally, catastrophic injuries and permanent impairments increase the value of a settlement. Impairments that significantly impact your ability to function in daily activities or earn income can significantly increase your future losses.
- Medical costs: If you require ongoing medical treatment for permanent disabilities and impairments, it could increase the amount you receive for a workers’ comp settlement. Your settlement should include estimated medical expenses you expect to require because of your impairment.
- Loss of income: If you cannot work because of your work-related injury, the amount of your workers’ compensation settlement should increase. The settlement should include future loss of income and earning capacity. Earning capacity is the difference between what you would have earned and what you can earn now, given your impairments.
- Occupation and age: The potential loss of income for a younger worker who is entirely disabled because of a work accident would be significantly higher compared to a worker who is close to retirement. The same would be true for their medical expenses over their lifetime. Long-term loss of income and care can increase workers’ compensation settlements.
- Strength of the case: The workers’ compensation insurance company weighs all factors when calculating a workers’ comp settlement. It examines the evidence proving your accident is covered by workers’ comp and the medical evidence proving the severity of your injuries and future losses. The stronger your evidence, the greater the chance your settlement amount could increase.
Consulting an experienced workers’ compensation attorney can help you navigate the claims process and estimate the value of your case.
Should I Accept a Workers’ Compensation Settlement?
There are several benefits of accepting a workers’ comp settlement. You receive financial relief quicker and avoid litigation. However, future medical costs and loss of income could total more than you anticipate. You may also experience additional future losses and financial hardships not factored into the settlement offer.
Before accepting what you believe to be the average settlement for a workers’ compensation claim in Alabama, speak with an attorney. An experienced Birmingham workplace accident lawyer reviews your case to determine if the type and amount of settlement are fair.
Types of Workers’ Compensation Settlements
A settlement for a workers’ compensation claim may be structured in several ways. A common type of workers’ comp settlement is the “Compromise and Release.” In this settlement, the insurance company pays the injured worker a lump sum to fully release the claim. The injured worker gives up the right to future payment of medical treatments or claims.
A “Stipulated Finding and Award” is similar. The parties agree to a lump sum settlement, but the worker can file claims for future medical treatment for the injury. A “Structured Settlement” does not offer a lump sum amount. Instead, the injured worker receives payments over time, which could have several financial and tax benefits.
Get Help With a Workers’ Compensation Settlement in Birmingham, AL
The best answer to “What is the average workers’ compensation settlement?” is ultimately “It depends.” If you have questions about workers’ compensation settlements in Alabama, contact Belt, Bruner & Barnett Personal Injury Lawyers for a free consultation to discuss your case with an attorney. Working with a lawyer can help you maximize the amount you receive for a workers’ compensation settlement.
Contact the Alabama Workers’ Compensation Attorneys at Belt, Bruner & Barnett Personal Injury Lawyers. Call us at (205) 206-5088
Contact an experienced workers’ compensation lawyer at Belt, Bruner & Barnett Personal Injury Lawyers to schedule a free initial consultation today. We serve Shelby County, Madison County, Montgomery County in Alabama, and its surrounding areas.
We are located in Birmingham, Huntsville & Montgomery.
Belt, Bruner & Barnett Personal Injury Lawyers – Birmingham Office
880 Montclair Road, Ste 300,
Birmingham, AL 35213
(205) 206-5088
Belt, Bruner & Barnett Personal Injury Lawyers – Huntsville Office
116 Jefferson St. Suite 207
Hunstville, AL, 35801
(256) 666-4660
Belt, Bruner & Barnett Personal Injury Lawyers – Montgomery Office
7 Clayton St, Suite 200,
Montgomery, AL 36104
(334) 513-2110