Understanding How a Workers’ Compensation Settlement Is Calculated

Have you recently suffered an injury at work, and you’re wondering how much compensation you’re entitled to? Then this article is for you! Understanding how a workers’ compensation settlement is calculated can be confusing and overwhelming.

Some legal implications and procedures have to be followed to calculate the proper settlement amount. The settlement amount is determined by the type of injury, the financial losses incurred due to the injury (such as medical bills and lost wages), and other evidence that may affect the award.

This article will help simplify a complex process, so don’t worry if it all seems overwhelming now! We’ll cover everything you need to understand how a worker’s compensation settlement is calculated.

What Is Covered in a Workers’ Compensation Settlement?

When it comes to worker’s compensation, you may be wondering exactly what types of damages a settlement will cover. Will you get paid for all the medical costs of your injury or just some? What about income replacement while you’re off work? Or non-economic damages such as pain and suffering?

Generally speaking, most settlements cover:

  • Reimbursement for medical bills related to the injury
  • A portion of lost wages while off work due to injury
  • Permanent disability payments based on the severity of your disability

Ohio workers’ compensation does not cover non-economic damages such as pain and suffering.

How Is Workers’ Compensation Calculated?

You may have heard that worker’s compensation settlements are determined based on a few factors, including the amount of time you were off work and the severity of your injury. But what does this all mean for you?

The amount of your worker’s compensation settlement is calculated using a formula. Here’s how it works.

Lost Wages and Benefits

The Ohio Bureau of Workers’ Compensation will consider lost wages when calculating worker’s comp benefits. This includes wages lost due to reduced hours or full salary loss while on leave due to an industrial injury.

Medical Bills and Expenses

The state will also factor in any medical expenses incurred as a result of the injury—things like hospital stays, medications, transportation to doctor’s appointments, etc.

Permanent Disability

If your injury results in permanent disability, additional compensation may be awarded based on the degree of disability.

Putting it together all these components are totaled and added together, so you get an appropriate payout for your case. Ohio has its own rates for worker’s comp.

A Columbus workers’ comp lawyer will do everything possible to ensure that you receive a fair payout that adequately compensates you for your workplace accident.

Your workers’ comp lawyer will fight for the maximum benefits.

Who Determines the Amount of the Settlement?

In order to understand how your worker’s compensation settlement is calculated, you need to know who’s in charge of determining your payout amount. In most cases, that’s the insurance company.

Insurance Company

Your employer likely has an insurance policy covering workplace injuries and illnesses. It’s this insurance company that will decide the amount of your settlement.

When you’ve been injured or become ill due to actions taken at work, such as a hazardous environment or tasks placed beyond your physical capabilities, the insurance company will assess the severity of the injury or illness and necessary medical treatments.

They’ll then decide whether they believe you should receive a payout and how large it should be.


You might be wondering what role you have in all this. If you believe the compensation offered by the insurance company isn’t enough, you can dispute it by gathering additional evidence on why it’s too low.

This could include medical records, bills, and witness statements from trusted colleagues or family members who know what happened during your working hours.

If, after doing this, you’re still dissatisfied with their offer, then a lawyer might be able to help put together an argument for why it should be increased further. If necessary, this might involve arbitration or filing a lawsuit against your employer and insurer.

What Factors Are Taken Into Consideration When Calculating the Settlement Amount?

When calculating a workers’ compensation settlement, many factors are considered. The settlement amount is based on the nature and extent of your injury, how it affects your ability to work and earn an income, and how much money you would have earned if you didn’t suffer the injury.

Here are some of the key elements that go into determining a worker’s compensation settlement:

Injury Severity

Your settlement will be based on the degree of your injury and how it affects your ability to work. If you suffer serious injuries that leave you unable to work for a long time, the payout from a worker’s compensation case will be much larger than if you only experience minor injuries that heal quickly.

Lost Wages

If you had to take time off from work due to the injury, workers’ compensation covers a percentage of your lost wages. This should also be considered when calculating your settlement amount.

Medical Expenses

Any medical bills associated with treating your injuries should also be weighed when deciding on a settlement amount. This includes expenses for doctor visits and medical procedures, any prescriptions, and physical therapy.

Permanent Disability

If you are partially or fully disabled, this will factor into the settlement amount.

Our Columbus Workers’ Compensation Lawyers Are Here To Help You With Your Claim

Depending on the extent and details of your claim, it’s best to contact a Columbus workers’ compensation lawyer for experienced guidance.

At our firm, we know how to navigate through the legal system to get you the best possible outcome. We have years of combined experience in worker’s compensation law, so we understand what it takes to bring a successful claim.

We also understand the complexities surrounding every case and can use our expertise to ensure that no detail is overlooked when settling your case. We can help determine if you should pursue a lump-sum or structured settlement and ensure you are aware of all your rights and options along the way.

Plus, with our knowledge of workers’ compensation laws, we can work with (or against) insurance companies to secure a fair settlement. If you’re dealing with a workplace injury in Columbus or any Ohio workplace, contact us today and let us help you get started on the road to recovery.