Lump Sum Settlements: Commutation

Q: What is a commutation and how can it benefit me?

A: Worker’s Compensation has a menu of benefits available, including payment of wages (called total disability), loss of earning capacity (called partial disability), permanent injury benefits, disfigurement, mileage and medical expenses. A commutation is an offer by the insurance company to “buy out” some or all of these benefits for a lump sum payment to the claimant. Some clients would prefer to have a lump sum benefit, and for those clients, a thorough investigation of the commutation offer is warranted and the pros and cons are weighed.

Q: What is the typical type of benefit that gets commuted?

A: Temporary partial disability (or loss of earning capacity) can for some clients who have returned to work be relatively small weekly benefits. Many times, insurance companies will offer to commute this benefit, and for many clients this makes sense for their own financial circumstances.

Q: Will I have to go to court to secure this benefit?

A: There is extensive paperwork that we will complete with you to start this process. Permission to commute benefits must come from the Industrial Accident Board. If so approved, you will be entitled to receive a commutation of benefits.

Q: How do I get in touch with you?