When you experience an injury at work, workers’ compensation benefits can reimburse you for medical expenses and a portion of your lost wages. But many workers may be unfamiliar with the workers’ comp process and have questions about what their payout will actually look like.
For example, are workers’ comp payouts in the form of a lump sum or ongoing payments? Generally, you would receive payments incrementally, but the insurance carrier might offer you a lump sum payout in certain cases.
For personalized guidance, it may help to consult a workers’ comp lawyer in New York who can review your case and explain what to expect based on the uniquie facts of your claim.
Understanding Workers’ Compensation Payouts
Offering workers’ compensation is one of the many employers’ rights and responsibilities that apply to the majority of employers in New York. A workers’ compensation payout refers to the money you may receive from your employer’s insurance carrier after a workplace injury. This payout is usually structured as ongoing payments for the days that you be out of work, but you may be presented with a lump sum settlement in certain cases.
- A structured payout or ongoing payments would provide you with periodic payments over a certain period of time. The total of all payments may be similar to what you may receive as a lump sum settlement, but it could end up being higher or lower.
- A lump sum settlement would take the form of a one-time payment. You would receive your entire payout in a single check and usually not expect to receive any further payments related to your injury.
If the insurance carrier has offered you a lump sum settlement in place of ongoing benefits, taking the time to carefully consider this offer is wise. A workers’ comp lawyer in New York can help you review the terms of the lump sum offer and can help you make an informed decision.
Pros and Cons of a Lump Sum vs. Ongoing Benefits
Workers’ compensation claims are often valued at tens or hundreds of thousands of dollars, especially when they involve a permanent total or partial disability. For example, one report found that the average payout for New York permanent partial disability claims in 2022 was $148,452, while the average for permanent total disability claims was over $1.5 million. Even claims only involving temporary injuries had an average value of $34,010.
For serious workplace injuries that give rise to steep medical bills and loss of ability to work, claimants can potentially receive a sizable payout. Determining whether to accept a lump sum settlement vs. the normal structured payout in these cases can feel overwhelming.
Pros and Cons of Lump Sums
General benefits of lump sum settlements include:
- Faster access to funds to immediately pay off medical bills and other mounting expenses
- Closure that allows you to pay off debts related to your accident and start moving forward
- Flexibility in how you use your workers’ compensation settlement without feeling limited by the smaller installments you’d receive in a structured payout
However, lump sums also present a few risks or disadvantages to consider:
- Inability to reopen the case if your medical needs or expenses change over time
- Risk of running out of money prematurely if you estimated your medical expenses incorrectly or used the funds on other expenses instead
- Potential impact on other benefits, such as Social Security Insurance (SSI) benefits, that you might otherwise be eligible for
Pros and Cons of Ongoing Benefits
Workplace accidents that lead to severe injuries and an inability to work generally give rise to periodic benefit payments in which claimants can continue receiving funds over time. The advantages of going through with the traditional ongoing benefit structure rather than accepting a lump sum may include:
- Long-term peace of mind that your medical expenses and a portion of your lost wages will be covered as long as you continue to qualify for benefits
- Reduced risk of mismanaging funds, as you will not have access to a lump sum that may be tempting to use on other expenses
- Increased eligibility for other benefits, like SSI or benefits
Meanwhile, a structured payout or ongoing benefits do give you less control over your funds, specifically applying to your medical expenses and lost wages. In some cases, the total payout may be lower than what you could receive up front in a lump sum.
A workers’ compensation lawyer in New York can help you explore all of these potential advantages and disadvantages while providing specific guidance with the details of your accident and case in mind.
When a Lump Sum vs. a Structured Payout Makes Sense in Workers’ Comp Cases
If you are still deciding between accepting a lump sum vs. taking the normal ongoing benefits, consider these scenarios in which each type of payment which might make sense for you.
A lump sum may be the better option in cases in which:
- Your injury is straightforward, and you do not expect to need expensive future medical treatment
- You do not want your payout to be dependent upon how your injury progresses down the line, risking payments stopping sooner than you expected because the workers’ comp board determines that you are able to return to work
- Your bills are piling up, and you want to be able to pay them off all at once
Meanwhile, ongoing payments might be the better option if:
- You expect to receive lifetime benefits for a permanent total disability
- You are unsure how your injuries will progress or the expected length of your recovery
- You plan to seek Social Security Insurance benefits (SSI) as well, and you don’t want your eligibility to be impacted by a lump sum payment
A lawyer for workplace injuries can help you understand the implications of both decisions and how settlements work under New York law, so you can feel completely comfortable choosing the right payout option.
Speak With a Workers’ Compensation Attorney in New York
Your workers’ compensation claim could be worth hundreds of thousands of dollars, and determining the right way to receive this payout isn’t always an easy or simple decision. At Pyrros, Serres & Rupwani, we represent clients across the workers’ compensation process. We want to help you make informed decisions with qualified legal guidance, and we explain everything from the cost of hiring a workers’ comp lawyer in New York to what exactly your payout will cover.
If you were injured at work and are exploring your options, schedule a free case evaluation today at 718-626-7730.
Frequently Asked Questions
What are the odds of winning a workers’ comp case in New York?
The odds of winning a workers’ comp case are fairly high. The New York Workers’ Compensation Board seeks to approve approximately 90% of claims. As long as there is some evidence that you were injured while performing your work duties, you should not need to worry about your claim being denied. However, most insurance carriers do not pay injured workers all of the benefits that they may be entitled to receive.
What is the deadline for submitting a workers’ compensation claim in New York?
You generally have 30 days to notify your employer of a workplace injury, and then the deadline to submit a claim within the NYS Workers’ Compensation Board is two years from the date of the injury. Speak with a workers’ comp lawyer to ensure that you understand all relevant deadlines and avoid compromising your right to compensation.
How can a workers’ comp lawyer in New York assist your claim?
A workers’ comp lawyer in New York can help you file a claim, submit evidence and communicate with the insurer as needed, evaluate your payout amount to ensure that it covers
