In theory, there is no reason to require you to resign in order to take a lump sum settlement award from workers’ compensation. And, moreover, most states even have laws that forbid employers from firing workers because they suffer a workplace injury and bring a workers' comp claim. In practice, though, many workers’ compensation insurance companies will refuse to offer a lump sum settlement if you return to work at the same employer. These insurance companies claim that they might have to cover another injury that is related to the one they already compensated. The lump-sum settlement agreement aims to compensate you for your future medical expenses for the injury. Once the lump sum agreement is made and signed, the insurance company gets to walk away from the injury. The settlement amount that has been paid absolves the insurer from covering whatever medical care is needed for the injury in the future. However, insurers claim that problems can arise if you receive a lump sum settlement and then return to work at the same employer. If you aggravate your old injury you could file for workers’ compensation, again. Your employer’s workers’ comp insurance carrier would then find itself paying to compensate a work-related injury that it already settled.