When Will Workers’ Comp Offer a Settlement?

Learn about some key factors that are most likely to prompt a settlement offer after an injury at work and when it’s likely to occur

A workplace injury can disrupt your life in a heartbeat, leaving you with medical bills, lost wages, and uncertainty about the future. Workers’ compensation benefits can offer some financial relief, but navigating the system can be time-consuming and complex. One option to consider is a workers’ compensation settlement.

This article will answer common questions about workers’ compensation settlements in South Carolina and discuss the types of cases most likely to be settled, when settlements are typically offered, and how long it takes to receive a settlement check.

If you want help estimating the value of your claim or negotiating with insurers to ensure you receive maximum compensation, contact our experienced Columbia work injury attorneys to schedule a free consultation.

Do all workers’ comp claims end in settlements?

No, not all workers’ comp claims end in a settlement. If you’ve been injured at work, it’s important to understand that the outcome of your claim can vary based on several factors. 

Typically, straightforward cases where the injury is minor, well-documented, and undisputed by the employer or insurance company do not end in a settlement. These cases are often resolved with the injured worker receiving medical treatment and temporary disability benefits until they can return to work.

However, more complex cases are more likely to end in a settlement. These include situations where:

• The injury is severe;
• The worker suffers a permanent disability; or
• There is a dispute over the extent of the injury or the necessity of ongoing medical treatment.

Additionally, cases where the injured worker cannot return to their previous job and needs vocational rehabilitation for retraining are also more likely to lead to settlements.

When am I most likely to be offered a settlement in my workers’ comp case?

While a settlement can be offered at any time during a workers’ comp case, there are some key points when settlement discussions are more likely to come up.

You have a permanent impairment

If your injury has resulted in permanent partial disability (PPD) or permanent total disability (PTD), a settlement is often offered once you’ve reached maximum medical improvement (MMI). This means your condition has stabilized, and further improvement is not expected. 

At this stage, the insurance company or your employer may propose a settlement to cover the long-term financial implications of your permanent condition, including future medical expenses and compensation for your reduced earning capacity.

Why?

By offering a settlement, the insurance company aims to close the case and avoid ongoing payments and potential future disputes. They may find it more cost-effective to provide a lump sum now rather than continue paying for indefinite medical treatments and disability benefits. 

Additionally, settling the case allows both parties to avoid the time, expense, and uncertainty of further litigation or hearings.

You need vocational retraining

If you’re unable to return to your previous job due to your injury, you may require vocational retraining or job placement assistance. In such cases, a settlement may be offered to cover the costs associated with retraining programs, education, and support to help you transition into a new career.

This type of settlement aims to provide financial stability while you acquire new skills and seek employment that accommodates your physical limitations.

By offering this settlement, the insurance company benefits by limiting their long-term liability and financial commitment. They recognize that providing a lump sum for retraining can help you quickly adapt to a new job, reducing the potential for ongoing wage loss benefits. 

Additionally, settling in this way can prevent future disputes over the extent and duration of retraining benefits, streamlining the process for both parties.

There are disputes about your injury

Disputes between you and the insurance company or your employer regarding the extent of your injury, your ability to return to work, or the need for ongoing medical treatment can also lead to settlement offers.

If there are disagreements about the validity of your claim, the severity of your injury, or the appropriate compensation, a settlement may be proposed as a way to resolve these disputes without the need for prolonged litigation.

This approach can expedite the resolution process and provide you with the compensation you need without the uncertainty of a trial. Insurance companies often prefer settlements in these situations as well to avoid the costs, time, and unpredictability associated with court proceedings.

Before a trial

Workers’ comp settlements are commonly offered right before a trial for several reasons:

• Mediation. Mediation often plays a key role at this stage. During mediation, a neutral third party helps facilitate negotiations between you and the insurance company or employer. This process can lead to a mutually agreeable settlement, avoiding the unpredictability and expense of a trial. Mediation encourages open communication and allows both parties to express their concerns and preferences in a less formal setting than a courtroom.
• Trial uncertainty. Another major factor is the inherent uncertainty of a trial outcome. Both parties face risks: the employer or insurance company might be ordered to pay more than they anticipated, and the injured worker might receive less. To mitigate this uncertainty, both sides may opt for a settlement.
• Court costs. Additionally, the costs associated with going to trial, such as legal fees, expert witness expenses, and court costs, can be substantial. For employers and insurance companies, settling a claim before trial can be a cost-effective way to resolve the dispute. For injured workers, a settlement can provide quicker access to compensation, avoiding the lengthy delays often associated with court proceedings.

In essence, the pressure of an impending trial often motivates both parties to seriously consider a settlement to avoid the risks and expenses involved. This makes the period right before trial a common time for settlement offers to be extended and accepted.

How long does it take to get a workers’ comp settlement check in SC?

The time it takes to receive a workers’ comp settlement check in South Carolina can vary, but below is the general process and timeline to give you an idea:

1. Commission review and approval. Once you and the insurance company reach a settlement agreement, the settlement must be submitted to the South Carolina Workers’ Compensation Commission for approval. If the Commission approves the settlement, they will issue an order to finalize it. This review process usually takes about 30 days.
2. Issuance of settlement check. After the Commission approves the settlement, the insurance company is generally required to issue the settlement check within 14 days.

All in all, it can take approximately 4 to 6 weeks to receive your settlement check, assuming there are no complications or delays in the approval process.

However, this timeline can vary depending on the specifics of your case and the efficiency of the involved parties. If there are any disputes or additional documentation required, this process could take longer.

Considering a workers’ comp settlement in South Carolina? We can help!

If you’re currently navigating a workers’ comp claim and wondering about the possibility of a settlement, the experienced Columbia workers’ compensation attorneys at Chappell, Chappell and Newman are here to help.

Our firm has a proven track record of successful negotiations, securing fair and comprehensive settlements for countless clients. We understand the stress that accompanies a permanent injury and are committed to advocating for your rights every step of the way to help maximize your claim.

Contact Chappell, Chappell and Newman today to schedule a free consultation and take the first step toward securing the compensation you deserve.