Easily one of the most common questions we get asked is: “How much is my workers’ comp case worth?” There is no exact number to fit all cases. Every case depends on the injury, future medical treatments, lost wages, and work restrictions. There are settlement calculators to help estimate what your claim may be worth.
A workers’ comp settlement is a injured worker allowing giving up future benefits in exchange for a lump sum payment. This money can be utilized by the injured worker for medical treatment, paying bills, vocational training, retirement, or other expenses. In Michigan, workers’ comp settlements are generally tax free.
How are settlements calculated?
Insurance companies typically look at your weekly comp rate, future wage loss, medical treatment, and vocational rehabilitation costs when making settlement offers. They are not looking to overpay, and many times we see workers offered much less than what their case may actually be worth.
In Michigan, workers’ comp checks are generally based on 80% of your after-tax average weekly wage. This includes overtime, bonuses, fringe benefits, and even second jobs you can no longer perform because of the injury.
A common starting point for estimating settlement value is multiplying the weekly comp rate by 52 weeks to calculate annual wage loss benefits. Insurance companies may then use a multiple of that number depending on the severity of the case and future medical costs.
It is also important to make sure the insurance company calculated your average weekly wage correctly. We frequently see insurance companies underestimate wages and underpay injured workers.
If you are thinking about settling your workers’ com case, it is important to understand what future medical treatment and wage loss may still be owed before accepting an offer.
If you have any questions please let us know and we would be happy to help!
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
