A burn can be first, second, or third-degree. A first-degree burn is the least severe and affects the epidermis or the top layer of the skin. A second-degree burn goes deeper and affects the dermis; it often leaves a scar. A third-degree burn penetrates the skin and into the fatty tissue beneath, causing nerve damage and long-term pain. A third-degree burn will likely earn a larger settlement than a first-degree burn.