Workers Comp Commutation–Should You Or Shouldn’t You?

Lump Sum Commutations

Legally what I have learned is that commutations are not right for every client.
One size does not fit all.

Let’s start with the basics. A commutation in a  workers compensation case involves the insurance company giving you a lump sum for the TOTAL amount of your workers compensation claim.
In a workers comp situation, a person injured on the job receives a portion of their salary every week.
With other benefits, the workers compensation stipend can get many people through the tough times of living until they are ready to go back to work.

However there is another procedure involved in these situations. That is the commutation or the lump sum payment.
A commutation occurs when the insurance company pays you in one lump sum for the entire money it owes you for your injuries.

So with a commutation, the advantage is that you get all of your $$ now.

However the disadvantage of it is that you get all of your $$ now.


What Pittsburgh workers compensation and accident attorney Bernie Tully means by that is that for most of us, when we get a windfall of $ there is a natural tendency to spend a lot of it on unnecessary things.

Can you see the danger?

If you burn through the lump-sum commutation $ within 2 years of your accident and your injury lasts for 5 years, what do you do for money for the remaining  3 years?

Probably the best time to take advantage of a lump sum commutation in a Worker’s Compensation case is when you already have a new job lined up before the Worker’s Comp referee approves the commutation. That way you have the lump sum money from the old job where you were injured and you immediately start receiving income from your new job.

Pittsburgh workers compensation attorney Bernie Tully has often  advised clients NOT to take a lump-sum for the dangers stated above.

Since each case is different based on your circumstances, whether a lump-sum is to your advantage or not is something that we can talk about.
For free and at no charge to you.

I would personally hate to advise someone to take a lump-sum and then have my client very bitter about it 3 years after all the commutation $$ is dried up.

The only thing I can say for sure is that the advice I give you on this issue will be my honest assessment of what is in YOUR best interest.

The Stanley Cup final is brutal. Are you watching every game?

Thanks for reading.
Bernie the attorney