What is a "settlement" in workers' compensation?

A "settlement" in workers' compensation refers to an agreement between the injured worker and the insurance carrier. This agreement typically resolves the claim by determining the financial compensation that the injured worker will receive in exchange for waiving their right to pursue further claims related to the injury.

Settlements are a crucial aspect of the workers' compensation process as they provide a means for both parties to reach a resolution without the need for prolonged litigation. This can be beneficial for the injured worker, who may receive benefits more quickly and securely, and for the insurance carrier, which can limit their ongoing liabilities.

In contrast to other options, a settlement is distinctly not a decision made by a judge, nor is it merely a medical report or a temporary payment. Those elements play different roles within the broader context of a workers' compensation claim but do not encapsulate the comprehensive agreement that a settlement represents.