Anyone who has even a passing familiarity with the practice of workers’ compensation is aware that lump sum settlements are almost always, strictly voluntary. The act does still offer a vehicle for a settlement via “contested commutation,” but that is a topic for another day. Unlike tort law, which  provides for lump sum, monetary remedies to be ordered through a civil lawsuit to individuals who have been harmed by the negligent acts of others, workers’ compensation law provides no such remedy. As workers’ compensation is a no-fault system, damages for pain and suffering as well as punitive remedies are not available. The injured worker is limited to receiving payment for wage loss and medical expenses. Again, there are other unique sources of compensation, such as specific loss benefits, but those too are not germane to our analysis. 

Since there is almost no way to force a lump sum settlement in the workers’ compensation arena, the most effective way to achieve such a result is through convincing the defendants that they will save money in the long run by settling the case. It is really that simple. The only purpose for an insurance company to pay a lump sum is to save money. It is with that fundamental principle in mind that we being our evaluation.