- 1). Obtain copies of accident reports. Employers usually prepare a company report before filing an official claim form with state workman's compensation agencies. Any report signed by an employer may prove liability.
- 2). Request copies of statements given by witnesses. Statements may prove the injury occurred in the normal course of employment and verify the severity of the accident.
- 3). Wait until reaching a point of maximum medical improvement before exploring settlement. Treating physicians decide when a patient's recovery is complete. After reaching maximum improvement, begin collecting documents required for settlement.
- 4). Request copies of medical reports and invoices prepared by all treating facilities. Verify the outstanding balance owed to each facility before settling.
- 5). Request a physician's narrative opinion. A final medical report is necessary for evaluating the settlement value of each claim. A primary treating physician should either rule out permanent disability or assign a percentage rating for whole body impairment. Additionally, a final report should estimate the cost of future medical expenses related to the accident.
- 6). Calculate disability settlement value. Historically, an average settlement for permanent disability payments is the product of multiplying the following items: (1) average weekly wage, (2) 52 weeks, (3) the percentage of whole body impairment, and (4) a factor of eight to include future years. Future value factors vary among geographical regions and states.
- 7). Reduce the value of settlement for perceived risk. Legal disputes lower settlement values. Employers may deny liability if an injury involved "horseplay" or substance abuse. Employers frequently contest the calculation of average weekly wage and permanent disability ratings. Evaluate the merit of each dispute and estimate the likelihood that the claim value may decrease.
- 8). Calculate net claim value by adding the present value of future disability payments, future medical expenses, and unpaid medical expenses. Subtract an estimated discount for risk.
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