Definition of Compromise Settlement
Compromise settlement is a type of workers' compensation settlement when there is a dispute concerning an employees' entitlement to receive benefits. In Utah, it is also referred to as a "disputed validitysettlement. A compromise settlement comes about due to a dispute as to whether a workers' compensation claim is valid and legally payable or where an injured worker and their employer's workers' compensation insurance company cannot agree on the value of a claim.
A compromise settlement allows both parties to assess the strengths and weaknesses of their respective positions and avoid the risk, delay and expense of additional adjudication. Both the injured worker and the insurance company agree to settle the claim for a lump sum payment. This type of settlement usually ends the workers' compensation case. The insurance company is not liable or responsible for any care or benefits after the settlement is approved. The injured worker is not allowed to reopen their workers' compensation claim for that particular work-related injury or illness. This is another type of workers' compensation settlement that an injured worker should accept with great care and the advice of a workers' compensation attorney.