In California, injured workers who face the tough Workers' Comp system may pursue a settlement to solve their cases. Compromise and Release is one of these settlements.
But how do you know if this is what you really need? There are several things to ponder when making such a major decision.
After all, your well-being and your family’s future are the most important things to consider. Hence, you could use something that allows you to thrive and provide for them.
That is why you should have information that helps you make the ideal decision.
Keep reading and find out about Compromise and Release settlements.
1. What is a Compromise and Release settlement?
A Compromise and Release (C&R) is one of the two types of settlements in Workers’ Comp.
Besides, it is the most popular among injured workers for several reasons, which we will explain further.
If you decide to accept this settlement, the insurance company will give you a one-time lump sum payment. This unique payment buys out the value of permanent disability and other benefits.
In addition, it also buys future health care you may need to recover from your injury.
2. Is the Compromise and Release settlement your best option?
In Workers’ Compensation, there are no two cases alike. Everything depends on factors such as the type of injury you suffered, your personal situation, and even your expectations for the future.
That being said, accepting a C&R settlement is an option you should consider according to those factors.
Moreover, other key points will guide you if a Compromise and Release settlement is the choice you are looking for.
Favorability
Compromise and Release settlements are often favorable to injured workers. That is because they allow you to take the money for medical care and use it to get the treatment on your own terms.
Freedom of choice
For many people, it’s very appealing to take the money and get the care on their own. It might be better for you to get the health care needed when you want and where you want.
This way, you would not be limited by geography and the choice of doctor within the Workers’ Comp system.
One-time lump sum
Permanent disability benefits are usually paid over time. But in Compromise and Release settlements, the entire amount of permanent disability is paid up-front as a lump sum.
Financial responsibilities
C&R settlements can be financially beneficial for you, as you might find yourself out of work and having mortgages, a family to look after, and bills to pay.
This lump sum payment can help you feel safer and more secure, as you’ll have control over the whole amount of money.
Dispute resolutions
Compromise and Release settlements are often used when there is a significant dispute between the parties.
This option can provide a reasonable alternative to going to trial and risking getting less than what you are entitled to.
Conclusion
Compromise and Release settlements can be suitable for injured workers in California who face a difficult situation with their injury and the case overall.
If you decide to go this way, C&R can get you the medical care needed. You would obtain a lump sum payment for permanent disability and other benefits, which can be financially beneficial.
However, it's important to consult with an attorney to understand the pros and cons of this type of settlement before making a decision.
Need help with your case? Contact Pacific Workers’, The Lawyers for Injured Workers for a free, confidential case evaluation. Call us at 800-606-6999 or make an appointment here.