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Definition of Compromise And Release

Compromise and release (C&R) is a type of workers' compensation settlement where you are given a lump sum payment, and you then have to pay for any medical care that you need in the future. This type of workers' compensation settlement is a compromise between you, the injured worker, and your employer's workers' compensation insurance company. It is a legal document that releases the insurance company from making future benefit payments to you in addition to the lump sump payment. It also releases the insurance company from any future liability for your work-related injury or illness. Insurance companies are increasingly pushing injured workers to accept this kind of settlement because it releases them from any future liabilities or responsibilities.

This type of settlement is supposed to include an estimated value of any future medical care that you may need. However, great care should be taken before accepting this kind of settlement due to the fact that you will never get enough money to adequately provide for an expensive surgery that you may need in the future, and you never know what problems may result from your work-related injury or illness in the future. In California, the Worker's Compensation Appeals Board has to approve a compromise and release settlement. In Pennsylvania, a judge has to approve a compromise and release.

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