What is a Lump Sum Settlement?

Another week, another question. Last week, we discussed Vocational Rehabilitation and what it means for injured workers. This week, let’s talk about lump sum payments.
Some may wonder, what is a lump sum?

A Lump Sum is a contract between you, your injured employee, and your Massachusetts workers compensation insurer. It is a one-time payment that replaces weekly compensation checks, in and some cases, other benefits that are a part of the package. A judge will then decide whether lump summing is in the injured employees’ best interest.
If you are an employer, it is important that you pay attention to this…

According to Mass.gov“Under the workers compensation law, employers with an experience modification that could be affected by the settlement MUST give a written consent for the settlement between the insurer and the employee.”

This is absolutely important to be aware of. Why? Because if this settlement negatively affects your experience MOD, you could end up dishing out more money in the long run. It is best to discuss this matter with our agents at Wolpert Insurance. We can help you figure out the ins and outs of Lump Sum Settlements and how they can hurt or benefit in the long run.

If you are interested in learning more, you are in luck. Next week, we will be discussing a few Lump Sum FAQs that you may want to be aware of. Your employees may come to you for advice, and you should have the answers!

Until next time, do not hesitate to call us with any questions or concerns at 877-215-1571. We look forward to speaking with you!