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Why Workers Compensation Insurance Companies Settle Cases

Most people have heard about settlement of case.  Ads by attorneys on television often talk about person injury and workers compensation settlements.

Those ads usually do not tell you a whole lot.  They do not talk to you about what a settlement is.  They also do not discuss why insurance companies settle cases.

To understand why insurance companies settle cases, you first need to understand what a workers compensation settlement is.  Basically, a settlement is an agreement between you and the insurance company.  In that agreement, you give up your workers compensation case and the insurance company buys it from you for a certain amount of money.

Construction worker falling off ladderUnder Georgia workers compensation law, a settlement is about the only way to get a lump sum payment of benefits.  It’s different than a personal injury case.  In a personal injury case, you can go to court and get a decision from a jury or a judge about entire value of your case.

Georgia workers compensation does not have the ability to get a lump sum verdict.  You can go to workers compensation court, but the judge does not award you a is no lump sum verdict otherwise.

Why would insurance companies be interested in settling workers compensation cases?

Remember that most insurance companies are for profit businesses.  They are in business to make money.

In a workers compensation case, they make money by taking insurance premiums from employers.  When someone gets hurt on the job, the insurance company has to pay out workers compensation benefits.

They want to pay as little as possible.  The less they pay, the more money the company makes.

What does settlement have to do with how insurance companies operate for profit?

Insurance companies try to predict what cases are going to cost.  That is how they try to decide what to charge you for a particular type of insurance policy.  They are in the business of managing risks.

In workers compensation cases, insurance companies try to predict what an injury will cost them.  They look at the cost of medical treatment.  They also looks at the temporary total disability benefits and permanent partial disability benefits you will receive. Based on that, the insurance company comes up with an estimate of what your case is going to cost them in the future.

Once they know what your case likely will cost them in the future, they can make a decision about what they should pay to “buy” your case.  They want to make a good business decision.  They will try to settle your case for less than it probably would cost them if they left your case open.

Why is it important to know why insurance companies settle cases?

You do not have to settle your case.  But, you way want to explore settlement.  Knowing how the insurance company evaluates cases will help you avoid settling your case for too little.

You probably will want to consider evaluating the case the same way that the insurance company does.  This is how I evaluate workers compensation cases for the clients I represent.  Insurance companies pay money in settlement when they believe that your case will cost them a lot in the future.

Couple worried about finances after work injuryWhat insurance companies will usually pay money for is if they see that your case is going to cost them a lot of money in the future.  That means they are going to have to pay a lot of workers compensation benefits.

Before figuring out a settlement amount, consider your other alternative.  You could just leave your case open.  If you consider what would happen and what benefits you would receive if you made that choice, I believe you can make a better decision about settlement.

What if I have other questions about settlement?

You need to make a good decision about settlement.  It is a very complex topic.  This article I wrote about settlement discusses the settlement process in more detail.

Before discussing a settlement amount with the insurance company, I recommend that you have a free consultation with an attorney who specializes in Georgia workers compensation.  Having an attorney on your side who knows this area of the law likely will help you get a good result.  If you would like to set up a free consultation with me, I am happy to do that.

What if I have other questions about workers compensation?

Georgia’s workers compensation system can be very confusing.  You have to worry about getting the treatment you need and paying your bills while also worrying about not missing any deadlines that could cause you to lose your right to receive workers compensation benefits.

If you have questions, I would recommend that you try to get answers.  To find out more about how to schedule a time to talk to me about your workers compensation questions, just read this short article.

Jason Perkins is an attorney who specializes in representing injured workers.  He regularly publishes videos and write blog articles about Georgia’s workers compensation system and issues that are important to injured workers and their families.

To be notified of Jason’s new workers compensation videos, subscribe to his Georgia Workers Compensation Video Series channel on YouTube by clicking the subscribe button below.

Brittney-lee orourkeBrittney-lee orourke
05:23 18 Feb 22
Amazing! Jason and his team were very helpful and had the best communication by far. Walked me though every step with great detail and had answers for any question I had. They handled my case better then I could imagine, it was a weird case and they stayed on top of it and kept me updated every step of the way! Highly recommend this Team! Thanks so much to Jason and his Awesome team!-Brittney
China JonesChina Jones
18:58 08 Feb 22
I absolutely love this group of attorneys, when I was at my lowest they did everything they could to help me get justice for my injury. I believe if I were to have never picked my phone up and called the amazing group that helped me I definitely would not have received my idea of rights. If you have an issue and are just not sure please understand that they will help you, stay in contact, answer any question you have, and for sure get you the justice you deserve I thank them from the bottom of my heart and I will definitely refer them to anyone who has been hurt because they most definitely care about their work and clients.
Luv LocsLuv Locs
16:08 15 Jan 22
The entire law office was attentive and responsive to all of my concerns dealing with my workers compensation case.
21:14 02 Jan 22
If you must get a lawyer involved, you’d do well to work with Jason Perkins and his team at Perkins Studdard Law.They were thorough in gathering information and in sharing all the steps in the workers comp process specific to my case. Jason and the team were responsive to my bevy of questions and concerns.I appreciated the informative videos and consultations provided by Jason over video meetings and multiple phone calls.I hope I’m never injured on the job again. However, if I am and if my employer responds as my previous employer did, I’ll contact Perkins Studdard Law immediately to handle the case.
Dana BessDana Bess
23:57 10 Dec 21
Everyone at Perkins Studdard was kind and professional. They were always extremely responsive and answered all questions that I had and followed up to make sure I had an understanding of what was going on along with emailing videos to explain every step of my case so I would know what to expect and be prepared. Jason is a very genuine person and I trusted him with my case. He answered so many questions for me even before I retained him as my WC lawyer. I highly recommend him and his associates at Perkins Studdard.

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Jason Perkins

Workers' Compensation Attorney

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