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Definition of Payment Without Prejudice

Payment without prejudice is what the initial period is referred to after a worker's injury in some jurisdictions. In some jurisdictions, the payment without prejudice period lasts for 90 days, In other jurisdictions, the period lasts for 180 days. During this period, a worker's employer's insurance company may pay benefits even though they are not certain that the claim is compensable or that they have liability for the claim. Payments made to a worker during the payment without prejudice period does not mean that the insurance company is accepting liability for the claim.

During the payment without prejudice period the insurance company may stop or reduce the payments to an injured worker. If the insurance company does this, it has to give the reasons for taking this action. During this time, the insurance company may challenge, deny or accept the claim as being a valid, compensable workers' compensation claim. If the insurance company continues to pay an injured worker past the payment without prejudice period, most of the time, they will need permission from the injured worker or a judge in order to stop or reduce payments. In some instances, the insurance company may ask an injured worker to extend the payment without prejudice period. An injured worker should consult a workers' compensation attorney and be very careful about doing this because it means that the insurance company is still not accepting liability for the claim.

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