Workers compensation is a widely used form of insurance in the United States. At a minimum, it provides employee medical treatment and time loss benefits that is paid for typically by the employer's workers compensation insurer. While state and federal worker's compensation laws vary, under the system an employee relinquishes their right to sue his or her employer for any liability or negligence for the workplace injury.
Workers' compensation is a no-fault system that provides coverage for the worker and limits the employer's liability for an employee's on the job injury. Workers Compensation laws mandate that nearly all employers purchase industrial insurance to cover their employees. Thus, anyone injured in a workplace injury, will be covered under some form of workers compensation insurance.
When an employee suffers a serious injury, it can have lifelong implications. Some workers are no longer able to work or are no longer able to return to their prior occupations as a result of their injuries. This can result in a significant loss of income. When a worked is rated with a permanent disability, they may receive a workers compensation settlement.
Workers compensation settlements involve the offering of a lump sum payment, in exchange for signing a release document that closes future liability for the claim. The injured worker needs to be aware of their rights and proceed cautiously prior to entering into an agreement. The offer may not be sufficient to cover the permanent disabling injuries sustained. An injured worker should consult with a workers compensation lawyer early in the process to ensure their interests are protected.