Agreement

What does Agreement mean?

The workers compensation agreement is a legal and private settlement between the injured worker and the insurance carrier. Under the workers compensation agreement the injured worker agrees to close the workers compensation case, releasing the carrier from their responsibility to pay on-going weekly benefits and medical expenses, in exchange for a lump sum payment. It is a voluntary negotiation between the injured party and the carrier.

If the injured worker enters into an agreement, the workers compensation case is considered closed, although some states may allow the agreement to be reopened if certain time constraints exist. Generally, however, the injured worker will not be entitled to further compensation, and the insurance carrier's liability is terminated.

Considerations prior to a workers compensation agreement

Prior to accepting a workers compensation agreement an injured worker should talk to their treating doctor and calculate all costs for ongoing medical care, including surgeries, post op care, therapy and anesthesia. The money offered for the settlement through the agreement represents both the value of the on-going benefit and the cost of on-going medical treatment. No more money will be offered even if the injured worker needs future medical care, such as surgery.

In some states, the workers Compensation Commission or a Workers Compensation Commissioner has to approve the agreement. Talk to a workers compensation lawyer if you have questions. Laws vary from state to state on workers compensation agreements.

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