Use Cases
Workers' Comp Claims and Pre-Settlement Funding
• 2 min read
Workers' compensation benefits often replace only a fraction of lost wages. Cash advances help bridge the gap during a contested claim.
Workers' comp typically pays around two-thirds of your average wage — and that's only if your claim is approved without dispute.
When a claim is contested, benefits can be delayed for weeks or months while the case is litigated. Meanwhile, bills don't stop.
Pre-settlement funding on workers' comp cases works the same way as on injury cases: non-recourse, no credit check, repaid from the eventual settlement.
Not every state and every situation qualifies, but in most workers' comp claims with attorney representation, funding is available.
Why workers' comp doesn't cover the gap
Workers' comp wage-replacement benefits typically cover about two-thirds of your average weekly wage, up to a state maximum. For many workers, that is not enough to cover normal living expenses.
And that is only when benefits are flowing. Contested claims can leave you with zero income for weeks or months while the dispute is litigated.
Contested cases are funding candidates
If your employer or their carrier is disputing your injury, denying causation, or pushing you back to work too soon, you have a contested claim. These claims are the most common workers' comp funding scenario.
An advance lets you pay bills while your attorney fights the dispute, instead of being pressured into a quick lowball settlement just to access cash.
Third-party claims alongside workers' comp
Many work injuries also create third-party claims — for example, a delivery driver hit by another vehicle, or a construction worker hurt by a subcontractor's negligence.
These third-party claims are typically larger than the workers' comp claim itself and can be funded under standard injury case criteria.
State-by-state variation
Pre-settlement funding on workers' comp is allowed in most but not all states, and the rules can vary by case type within a state.
AARC reviews each application against the rules of the relevant state. If funding is not available, we will tell you that upfront with no obligation.
Talk to AARC before you make a financial move you'll regret
Every situation is different, and the right answer depends on the specifics of your case, your timeline, and what you need the money for. The single best thing you can do is have a short, no-pressure conversation with someone who funds these cases every day.
Call AARC at (800) 297-3834 or apply online in about three minutes. There is no credit check, no obligation, and no cost to find out what you qualify for. If a cash advance isn't the right tool for your situation, we'll tell you that too.
Frequently asked questions
- What can I spend the advance on?
- There are no restrictions. Claimants commonly use funds for rent, groceries, utilities, transportation, childcare, and medical co-pays while their case is pending.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
