Can I Settle My Workers' Compensation Claim for a Lump Sum?

Suffering a workplace injury can be stressful enough—navigating Florida’s worker's compensation system shouldn’t add to that burden. If you’re wondering whether you can settle your worker's comp claim for a lump sum instead of receiving weekly payments, the answer is: yes, it is possible under certain circumstances. However, before making this decision, it’s important to understand how settlements work and what you might be giving up in the process.

What Is a Lump Sum Settlement?

A lump sum settlement is a one-time payment from the insurance company meant to resolve your worker's compensation case. In Florida, this is known as a washout settlement, which typically means you agree to permanently close your claim in exchange for a single payment. This can be attractive if you’re looking for financial flexibility, but it also comes with the loss of future medical or wage benefits related to the injury.

How to Settle a worker's Comp Claim in Florida

In Florida, you may be eligible to negotiate a lump sum settlement once you’ve reached Maximum Medical Improvement (MMI)—a point where your condition is not expected to improve significantly. Here are the key steps involved:

Reach MMI or be eligible under special circumstances: Settlements are most common after your condition stabilizes.
Negotiate with the insurance company: Your attorney will assess your future medical needs, lost wages, and other factors to determine a fair settlement amount.
Sign a settlement agreement: This legally binding document outlines the payment terms and waives your right to any further benefits.
Get approval from a judge: Even if both parties agree, a Florida Judge of Compensation Claims must review and approve the settlement to ensure it’s fair and in your best interest.

It’s important to consult with a knowledgeable worker's compensation attorney before agreeing to any settlement. Once finalized, the decision is usually permanent.

Talk to a Florida worker's Compensation Lawyer Today

Settling your worker's compensation claim for a lump sum might offer immediate financial relief, but it also means giving up ongoing benefits that may be critical to your long-term health and recovery. At Rooth Law Firm, we help injured workers across Florida understand their rights and make informed decisions about their claims.