Receiving a settlement offer from an adjuster can feel like a major milestone in your workers’ compensation journey. However, it’s crucial to fully understand your options before signing any agreement.
In North Carolina, two common types of workers’ compensation settlement agreements are the Clincher Agreement (which is also known as a Compromise Settlement Agreement) and the Form 26A Agreement. Each has distinct implications for your future medical rights, financial compensation, and legal options.
Let’s explore these agreements and why consulting an experienced workers’ compensation attorney is essential.
What is a Clincher Agreement?
A Clincher Agreement is a full and final settlement of your workers’ compensation claim. By signing this agreement, you agree to a one-time lump sum payment from the employer or insurer, but also typically give up your rights to any future medical benefits related to your work injury.
Clincher Agreements are typically used when an employee wants to resolve the case entirely and avoid future dealings with the employer or insurer. However, this also means that any unforeseen medical complications or long-term care needs arising from your injury will be your financial responsibility. This type of settlement agreement is typically used when all issues in the case are settled in entirety, including medical benefits and workers’ compensation check issues regardless of whether someone has retired to work by that point or not.
Because the stakes are high, it’s essential to carefully evaluate whether the lump sum being offered is sufficient to cover not just your current needs but also any potential future expenses.
What is a Form 26A Agreement?
A Form 26A Agreement is less comprehensive than a Clincher Agreement and is used to resolve ongoing disability benefits. This agreement confirms the injured worker has reached maximum medical improvement (MMI) and outlines compensation for permanent partial disability (PPD), based on impairment ratings provided by a doctor.
Importantly, under Form 26A, your medical benefits for the work-related injury typically remain open. This means you can still receive medical care for your injury after signing the agreement, which can be a critical safety net if complications arise later.
However, time limitations apply. Specifically, the North Carolina Workers’ Compensation Act allows injured workers two years from the date of their last indemnity payment to request additional benefits or reopen their claim. If you fail to act within this time frame, you may lose your ability to seek further compensation.
Why You Need an Attorney’s Guidance
While settlement offers from insurance adjusters might seem fair at first glance, they are often crafted to minimize the insurance company’s liability rather than maximize your compensation.
An experienced workers’ compensation attorney can help you:
- Assess whether the settlement amount reflects the true value of your claim, including lost wages, medical expenses, and potential long-term care needs.
- Determine if a Clincher Agreement or Form 26A is better for your specific situation.
- Evaluate medical opinions to ensure the impairment rating and benefits are accurate.
- Identify whether additional compensation, such as vocational retraining or extended disability benefits, may be available.
Without legal advice, you may inadvertently waive rights or accept less than the full benefits you may deserve.
Final Thoughts
Settling your workers’ compensation claim is a significant decision with long-term implications. Before signing any agreement, it is advisable to consult an experienced workers’ compensation attorney. Their expertise ensures that your settlement reflects the full extent of your rights and the future challenges you may face due to your work-related injury. Obtaining legal counsel now to evaluate settlement options can potentially save you from significant financial and medical hardships later.
