There are around 340 million occupational accidents every year in the US. This doesn’t take into account work-related illnesses, which account for another 160 million victims each year. If nothing else, these numbers should make it startlingly clear just how common workplace accidents are.
That’s why it’s important to understand what options are available to you should you get injured at your workplace in Pennsylvania. Getting injured can take you out of work and workers’ comp can help you replace that lost income, but what happens while you’re waiting for the compensation to come through?
To answer that question, we’re going to take a look at workers compensation settlement funding. What are they? Why would you need one? And what steps are there to getting a settlement loan? We’ll look at each of these in turn so you can determine whether you’re eligible for a workers comp settlement loan.
What Is a Workers’ Comp Settlement Loan?
When we’re injured at the workplace, we start to lose money right away. There are the immediate medical costs for treatment, and these can go on to be recurring costs depending on the type of injury suffered, as well as the loss of income that naturally arises from our inability to work because of said injury.
So we need money immediately upon being injured, but workers’ comp cases take time to settle. They have to look into the circumstances of the incident, meet with your employer, and all sorts of bureaucratic hoops to jump through. These are important to prevent the system from being exploited but they negatively impact the injured by slowing down how soon they can get workers’ comp.
A workers’ comp settlement loan is a type of loan provided by a legal funding institution with the express purpose of alleviating your financial strain while waiting for the workers’ comp case to be decided. Unlike a typical loan, a settlement loan acts more like an advance against your case. What this means is that they are offered at low interest rates, and reduced or eliminated upfront costs.
As a bonus, the non-recourse nature of these loans mean that usually you will not be asked to pay them back should the workers’ comp case fail. This makes them a fairly risk-free way for workers’ to pay for their basic needs, like utility or medical bills, without worrying about getting too far into debt.
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