What is an interim settlement in workers' compensation?

An interim settlement in workers' compensation refers to a temporary agreement that provides benefits to the injured worker while their claim is still being evaluated. This type of settlement is designed to offer financial support during the period of uncertainty as the details of the claim are being assessed, allowing workers to cover medical expenses and lost wages while awaiting a final decision.

This approach is crucial because it ensures that workers do not face financial hardships while navigating the often lengthy claims process. By receiving interim benefits, the injured party can maintain some level of financial stability, which is essential for their recovery and well-being.

Other options do not accurately capture the nature of interim settlements. For instance, a final settlement occurs only after all details have been resolved, and a permanent financial solution would imply that long-term disabilities are evaluated and settled, which is not the nature of an interim agreement. Similarly, a negotiation strategy that delays payments does not align with the purpose of an interim settlement; instead, interim settlements are meant to expedite support, not postpone it.