What is a Clincher Agreement in a Workers’ Comp Case?
Workers’ compensation pays benefits to people who cannot work due to a work-related illness or injury. The benefits paid are to cover your medical expenses and a portion of your lost income. In general, payments are made weekly until you are fully recovered and able to return to work. However, the insurance company may offer to pay you a lump sum settlement if you have suffered a permanent disability. If the insurance company is offering you a lump sum payment, you should speak with a Raleigh workers’ comp lawyer as soon as possible because there are important details that you should consider before accepting the payment.
Clincher Agreements Explained
As mentioned above, workers’ compensation payments are typically made weekly. Insurance companies do not determine what your claim is worth at the outset and then make a single payment. This is for a good reason. In cases where the worker is suffering a severe illness or injury, it is normally unclear whether they will be able to make a full recovery and return to work.
However, the insurance company may try to buy out your claim if it appears that you will be permanently disabled, either partially or totally. In this situation, they will calculate what your claim is worth and then offer a one-time, lump-sum payment as full and final satisfaction of your claim. This is typically referred to as a “clincher agreement” and is formally known as a “compromise settlement agreement.”
You are not obligated to accept the payment, but they can be attractive for several reasons. There are many factors to consider when determining whether the offer is fair, and you should understand that you are waiving any future benefits. A Raleigh workers’ comp lawyer can review your offer and provide you with the guidance you need before you settle.
Calculating the Value of Your Clincher Agreement
There is no set formula for calculating what your claim may be worth. Instead, you need to consider a variety of factors:
- Whether you are partially or totally disabled
- Whether you are able to return to work at all
- Whether you can work in your prior position at full capacity
- What your continued medical expenses will be
- How much income you will lose as a result of your disability
An experienced Raleigh workers’ comp lawyer will be able to review your claim and determine what a fair and reasonable settlement would be. This is an important step because once you accept payment, you have no right to further benefits.
Talk to a Raleigh Workers’ Comp Lawyer Today
Insurance companies often try to settle workers’ comp claims for as little as possible when negotiating a clincher agreement. They may suggest that their offer is more than generous and bring a great deal of pressure to get you to accept it. You need someone on your side who can help you make the right decision for your future. Before accepting your settlement, talk to a Raleigh workers’ comp lawyer at Martin & Jones. Call us at 800-662-1234 or contact us online to schedule a free consultation.Share This
The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.