One of the biggest concerns for injured workers is how much they will receive through their workers’ compensation cases. To get a better idea of what workers are getting for their workers' comp claims, in 2016 we surveyed our readers across the nation to find out about their experiences.
Here’s what we learned.
Chances of Winning Your Workers' Comp Case
The good news is that most workers that we surveyed received some sort of payout for their workers’ compensation claims: 73% of workers received a payout on their claims, either through a voluntary settlement with the insurance company or through an award by a workers’ comp judge after a hearing. Only 27% of injured workers did not receive a settlement or award.
Workers' Comp Settlements: How Much Will I Get?
The average compensation received by workers for their injuries was $21,800 when our survey was performed in 2016.
At the extreme ends of the scale, 12% of workers received less than $2,000, while only 8% of workers received between $60,000 and $100,000. The majority of workers, 55%, received between $2,000 and $20,000.
More recent data from the National Council on Compensation Insurance’s (NCCI) Workers Compensation Statistical Plan database found that the average workers' comp award for 2019-2020 was higher, at around $41,000.
While inflation between 2016 and 2020 accounts for some of that increase, another factor could be in play as well: The readers we surveyed had come to our websites to find information about a claim and to look for a lawyer. It may be that those with more severe injuries (which would naturally lead to a higher settlement or award) immediately retained a lawyer and therefore did not participate in our survey.
It’s important to note that the amount a worker receives in benefits varies greatly from state to state. Some states are more generous than others when it comes to workers’ comp benefits. A worker will usually receive benefits at a much higher rate in Washington or Pennsylvania than in Alabama or Georgia, for example.
Factors That Affect Workers' Comp Settlement Amounts
Several factors influence how much a worker might receive in workers’ compensation benefits, many of which are particular to the worker’s circumstances, such as the cause of injury, the body part(s) injured, and nature of the injury.
Compensation Amounts by Cause of Injury
According to the NCCI data from 2019-2020, certain injuries tended to yield workers' comp amounts that were above average. Those included motor vehicle accidents ($85,311), burns ($54,173), and falls or slips ($48,575).
Compensation Amounts by Part of Body
The NCCI data also shows that injuries to the head or central nervous system were the most valuable for workers' comp purposes, with average compensation of $93,942 per claim in 2019 and 2020.
Other above average settlement amounts involved injuries to:
- multiple body parts ($62,859)
- the legs ($59,748)
- the neck ($59,391), and
- the arms or shoulders ($49,116).
Compensation Amounts by Type of Injury
Finally, the nature of the injury greatly influences typical workers' compensation amounts received. According to the NCCI data, injuries resulting in amputation were the most costly, with an average of $118,837 per claim filed in 2019 and 2020.
Other costly injuries were those involving fracture, crush, or dislocation ($60,934) and other trauma ($60,288).
Does Filing an Appeal Affect Your Compensation Amount?
One factor that affected the outcome of a workers’ comp case was how the case was resolved. Not surprisingly, workers who settled their cases without filing an appeal or requesting a workers’ comp hearing received lower compensation than those who did.
Just over half of our readers did not request a hearing or file an appeal to seek more in benefits. These workers received an average of $18,800.
Workers who filed an appeal with the state workers’ compensation agency or requested a hearing in front of a workers' comp judge tended to have much better outcomes. These workers received an average of $25,100.
This means that workers who filed appeals or requested hearings received 34% more in benefits than those who didn’t. The results were similar regardless of whether the workers actually went to a hearing or whether they settled before the hearing.
For more information on the appeals process, see How to Appeal a Workers' Compensation Denial.
Negotiating a Fair Workers' Comp Settlement
As you would expect, the amount of negotiating that a worker did prior to settling had a large impact on the overall settlement amount. Workers who accepted the first settlement offer they received ended up with an average of $10,700.
In contrast, workers who engaged in negotiations received an average of $26,300. This is almost a 150% increase in compensation. The lesson: Ask and you shall receive.
Hiring a Workers' Comp Lawyer
Injured workers who were represented by a workers' comp lawyer tended to receive more in compensation than those who were not. Nearly a third of workers (32%) did not hire a lawyer to represent them in their workers’ compensation cases. On average, these workers received $18,000 in compensation.
A majority of the injured workers we surveyed (68%), on the other hand, were represented by a lawyer. The average compensation received by these workers was $23,500. In other words, workers with lawyers received nearly one-third more in benefits than workers without lawyers.
What Type of Benefits Are Included in the Workers' Comp Settlement or Award?
In most states, the majority of a workers’ compensation settlement or award is compensation for a permanent disability.
Temporary disability payments, which compensate a worker for time missed from work during his or her recovery, are usually paid while the claim is ongoing. These payments are included in a settlement or award only if the insurer wrongfully failed to make the payments when they were due.
Likewise, medical benefits are typically paid directly to the workers’ health care providers while the claim is still ongoing.
Because of this, the overall amounts received by injured workers is likely higher than the amounts stated above, when taking temporary disability payments into account. And, this means that even workers who did not receive a settlement or award may still have received benefits for medical bills or lost wages.
What's the Difference Between a Workers' Comp Award and a Settlement?
Quite simply, you receive a workers' comp award when your workers' comp claim is approved. Whether your injury is permanent or temporary, you'll receive weekly benefits for your injury or illness according to a formula set by your state. Sometimes a lump sum will be awarded. No matter how benefits are paid, you haven't relinquished any rights by receiving an award of benefits.
In the case of a settlement, your claim is not formally approved, but the state or insurer agrees to pay you a lump-sum amount in exchange for giving up your right to pursue your claim through the workers' comp system. In some cases, the workers' comp agency agrees that you're owed some benefits, but settles as to the amount. It's a good idea to consult with a workers' comp lawyer before agreeing to a settlement.
Contact a Workers' Comp Lawyer
While surveys are helpful in determining current trends and practices, they can’t predict the exact amount you’ll receive or what a good settlement would be for your case.
The amount of compensation you’re entitled to depends on a number of factors particular to your situation, including the nature and extent of your injury, the impact your injury has had on your ability to work, and what state you were working in at the time of your injury.
Each state has its own workers’ compensation rules, especially when it comes to compensation amounts. To get an idea of what you can expect to recover in your case, talk to a workers’ compensation lawyer in your area.
About This Report
The reader survey data referenced above is from Martindale-Nolo Research's 2016 workers' compensation study, which analyzed responses from readers who had workers' comp claims, had researched hiring a lawyer, and agreed to participate in the survey. The names of any quoted readers have been changed to protect their privacy.