The Pros (and Cons) of Commutation of Workers’ Comp Benefits

By Jeffrey S. Friedman | January 24, 2019

The Pros (and Cons) of Commutation of Workers’ Comp BenefitsThe Delaware legal professionals at Silverman, McDonald & Friedman have been successfully assisting workers for decades. If you were injured on the job, schedule a free consultation with one of our attorneys today. We have offices in Wilmington, Newark and Seaford.

At its core, workers’ compensation is a simple concept. Your employer is required by law to carry insurance that will assist you with medical bills and lost wages in the event you’re injured or disabled on the job. In turn, you agree not to bring a lawsuit against your employer for your injury.

However, if your workplace injury case results in workers’ comp benefits lasting six months or more, you might want to consider a lump-sum settlement – or commutation of benefits – instead. Basically, this closes and settles your workers’ compensation case and pays you your benefits in one lump sum.

It’s important you weigh the pros and cons of commutation, as a settlement is right for some people, but not everyone. Everyone’s workers’ compensation case is different, so deciding whether or not to get a lump-sum settlement depends on your particular circumstances. Your attorney can help guide you in the right direction. However, here’s a general guide to pros and cons of commutation.

Pros of commutation of workers’ comp benefits

Reasons you may want to receive a commutation of benefits in Delaware include:

  • It ends any financial uncertainty regarding how long your workers’ compensation payments will continue.
  • You can budget going forward based on the settlement amount, rather than the stress of submitting medical bills to insurance every few weeks and waiting for a check to arrive.
  • If you have a specific and pressing need for the money, a lump sum might be more beneficial.
  • A settlement allows you to see any medical professional you want, rather than being bound to a doctor who is appointed to you by your employer.
  • If you’re close to retirement age and don’t plan to return to work, whether or not you fully recover from your injury, you may benefit from a settlement.

Cons of commutation of workers’ comp benefits

If your workplace injury results in a permanent disability, a lump-sum settlement may not be for you. If you receive total disability benefits, those benefits continue as long as you are disabled, even for a lifetime.

Additionally, it’s important to note that once you receive a commutation of benefits, your workers’ comp claim closes forever. You must ensure a settlement is right for you, as you’ll be signing away your rights to any future benefits. An experienced workers’ compensation attorney can strategize with you about the best decision for your particular situation.

Your attorney can review every detail of your claim and determine the future costs of your injury to help ensure you receive the settlement to which you’re entitled. Under a commutation of benefits, the Delaware Industrial Accident Board may approve either a lump-sum payment or structured periodic payments, and consider your claim settled.

Commutation of workers’ compensation benefits is not a decision you should take lightly. We recommend meeting with a professional before taking any action, to make sure you are making the best financial decision for you, your health, and your family.

The Delaware workers’ compensation attorneys at Silverman, McDonald & Friedman have a deep understanding of the system and can help when you’ve been injured on the job. We’ll work to secure the benefits to which you’re entitled. Contact us today for a free consultation – we have offices in Wilmington, Seaford, and Newark. Call 302-888-2900 or fill out our contact form.

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Posted in Workers Compensation