Michigan Worker’s Compensation Settlement v. Voluntary Payment
Lump Sum Settlements
Most Michigan workers’ comp settlements are made in a lump sum. In a lump sum settlement, the insurance company agrees to make one payment that resolves your entire workers’ comp claim.
A lump sum settlement is different than a voluntary payment (VP) agreement. A VP agreement simply means that the insurance company has agreed to voluntarily pay you a certain amount in workers’ comp benefits. If you signed a brief voluntary payment form (Form WC-115) and did not attend a redemption hearing (see below), you did not settle your case. You can still demand ongoing benefits or file an appeal if the insurance company disputes your benefits in the future.