If you have an accident at work, workers’ compensation or workers’ comp is a form of insurance that offers medical benefits and wage replacement if you relinquish the right to sue your employer.
Workers’ comp pre-settlement funding is designed to help you get a cash advance on a workers’ compensation claim settlement, giving you the cash to pay your bills while you are waiting for this claim to settle. This form of finance is known as a lawsuit loan.
Is It Possible To Get Pre-Settlement Funding While on Workers’ Compensation?
Yes, if you have a workers’ compensation case in progress, pre-settlement funding allows you to get a cash advance against your case.
With no out-of-pocket costs, no upfront fees, no credit check, and no monthly payments, you repay a percentage of your settlement to the funding company if you win your case, but you repay nothing if you lose your case.
What Are The Most Common Causes of Workplace Accidents?
The nature of workplace accidents means they can happen at any time, for any reason, and without warning.
To be eligible for workers’ compensation, employees injured in the workplace do not need to prove the accident occurred due to the negligence of another party. Neither personal negligence nor fault is accounted for in a workers’ comp case.
The most common causes of workplace accidents qualifying for accident claim cash advances include:
- Machine and equipment malfunction
- Machine entanglement
- Auto accident
- Semi-trailer truck accident
- Falling object injury
- Hazardous materials
- Construction accident
- Slip and fall accidents
- Slip and fall accidental injuries
- Trip and fall injuries
- Falling from heights
- Repetitive motion injuries
- Occupational diseases
- Overexertion injuries
- Industrial accidents
- Workplace violence
- Fatal work accidents
What Is Involved in a Workers’ Compensation Settlement?
According to Bureau of Labor statistics, there are 2.8 workers’ compensation claims filed per 100 full-time employees.
Workers’ comp is intended to compensate victims of workplace accident injuries requiring immediate medical assistance. Workers’ compensation also covers lost wages resulting from an inability to work while recovering from accident injuries.
Workers’ compensation, then, is a form of insurance that provides medical benefits and replacement wages for employees injured in the line of duty.
With this insurance, employees have an easy outlet to claim compensation for their injuries without a complicated claims process. Employers can avoid a potentially costly and time-consuming lawsuit. Workers’ comp claims are resolved through an administrative board rather than in a law court.
In most states, it is possible to apply for a workers’ compensation loan. This is a non-recourse cash advance rather than a loan, despite the widely-used term lawsuit loans applied to this form of financing.
In many states, you can negotiate a lump sum cash settlement for workers’ comp rather than receiving permanent disability payments made weekly.
If you are injured at work and you have a permanent disability caused by the workplace accident, the insurer will pay for the following:
- Permanent disability payments
- Medical care
- Future wage compensation
Workers in this scenario will also have the option of settling disputed reimbursement for past medical and disability bills.
How Common Are Workers’ Comp Cases?
In the United States, there was a decrease in workplace fatalities in 2020, with 4,764 people dying as a result of a workplace accident.
The same BLS data shows that there were 2.8 million nonfatal workplace injuries, resulting in 1.1 million reported workers’ comp cases each year.
When Is It Worth Considering a Lawsuit Loan?
If you have been seriously injured in an accident at work, you may find your expenses start spiraling, with medical bills and associated costs rising at the same time as you need time off work to recover from your injuries.
Workers’ compensation might help you to recover the costs of your losses, but it can take months for your compensation claim to settle.
Considering a lawsuit loan while on workers’ compensation can help you to keep your head above water financially, focusing on your recovery rather than stressing about money. A lawsuit cash advance against your workers’ comp claim could help you cover the following expenses:
- Rent or mortgage
- Medical bills
- Utility bills
- Childcare costs
- Automotive expenses
- Tuition or student loans
- Overdue and outstanding bills
Who Qualifies for a Cash Advance on Workers’ Compensation Settlements?
Most reputable pre-settlement funding companies make it straightforward for the victims of serious injuries related to workplace accidents to qualify for a cash advance on their workers’ comp claim.
You should qualify for a cash advance on your settlement if:
- You are hurt in an accident and work and suffer injuries.
- You hired a personal injury attorney.
- You have a pending workers’ compensation settlement in a state where workers’ comp legal funding is available.
You are free to take out a cash advance against your pending workers’ comp case during any stage of that claim. It makes no difference when a workplace accident occurs.
As long as the claim is accepted by the board or the insurance company and you hire a lawyer who controls the funds, you meet the basic eligibility requirements for pre-settlement funding for a workers’ compensation claim.
Is Your Work Injury Claim Eligible for Workers’ Compensation Pre-Settlement Funding?
If you are injured while on the job, or if you suffer injuries or illness in the course of your duty, you are eligible to apply for workers’ comp funding against a future legal settlement.
Most legal funding companies will offer cash advances for injured workers who are victims of the most commonplace work-related injuries. The following injuries sustained at work all qualify for lawsuit funding reviews:
- Repetitive stress injuries
- Shoulder injury
- Meniscal tear
- Knee injury
- Herniated disc injury
- Crushed limbs
- Broken bones
- Eye injury
- Skull and facial fractures
- Spinal cord injuries
- Soft tissue injuries
- Traumatic brain injury
Are Credit Score and Occupation Relevant When Applying for a Lawsuit Loan While on Workers’ Comp?
If you are exploring the idea of getting a lawsuit loan while on workers’ compensation, the pre-settlement funding company has no interest in your credit score or your socio-economic status. Workers’ comp settlement funding is based purely on your anticipated settlement and how much you could potentially receive once your case has settled.
This means that your income, employment status, and credit score are not relevant factors in the application process for obtaining legal funding on a workers’ comp settlement.
It doesn’t matter what industry you work in when it comes to workers’ compensation, and as long as you have an expected claim, you should have no problem finding a funding company prepared to offer a non-recourse cash advance against this settlement.
How Long Does a Workers’ Comp Claim Take to Settle and Under What Terms?
All workers’ compensation claims are unique, so it is not easy to predict how long it will take to settle your claim. Your attorney needs to negotiate with the insurance company, reviewing your claim and all supporting medical records.
Once a workers’ compensation settlement is complete, it will typically take a few works for the paperwork to be drafted and signed. The documentation is then submitted for approval by the board of workers’ comp. Once your settlement has been approved, you will usually receive a check within around 20 days.
The duration of this process means you may find yourself struggling financially, frustrated because you know a settlement is incoming, even if it is taking some time to complete.
Applying for legal funding couldn’t be easier. Contact the funding company and supply the contact information of your attorney along with the basic facts of your workers’ compensation case.
The funding company will then liaise with your lawyer to discover more about your case and your anticipated settlement. If you have a small-dollar claim or a straightforward personal injury claim, your attorney will only need to supply minimal information.
Once approved for funding, you could receive cash within 48 hours of approval.