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As a business leader, you always have to manage the unexpected, but a birth injury diagnosis can turn your entire family’s world upside down. It’s a tremendous emotional shockwave, but once the initial shock subsides, you as a parent have to make some tough decisions that require the acumen of a CEO.
The financial aspects of a birth injury are enormous, often bigger than the budget of a small business. Making the right moves at the onset can mean all the difference between financial struggles for a lifetime and your child’s needs being met properly. Here are three financial decisions that you should be willing to take after a birth injury diagnosis.
Securing Capital Via Legal Recourse
The first important call you’ll have to make involves capitalization. In the business world, it’s natural to pursue damages when a third-party vendor fails to meet a contractual standard and hurts your enterprise in any way. This is no different for birth injuries due to the lack of medical care.
When it comes to birth injuries where medical malpractice is established due to factors such as failing to monitor fetal distress or misusing delivery equipment, your initial capitalization mechanism is to go after cerebral palsy settlements. These settlements are huge financial infusions aimed at ensuring that your child’s financial footing is intact.
Statistics from malpractice insurance companies reveal that the average settlement amount in relation to cerebral palsy claims tops $1 million. These financial implications paint the intensity of the financial blow your family has to deal with. So, taking a legal route is vital after a birth injury diagnosis.
Forecasting Liabilities Through a Strategic Plan
Once you have established a potential source of funds, the next logical step is to focus on accurate forecasting. In any business, underestimating the cost of goods sold can be detrimental. The same holds for underestimating a birth injury cost over a lifetime. A savvy approach is to create a Life Care Plan, a medical and financial strategy that determines future costs for your child’s entire life expectancy.
Data shows that the lifetime expenses for a person with cerebral palsy often exceed $1.6 million. However, if you include negligence in the equation, the expenses incurred are likely to increase exponentially in a short time. Therefore, you shouldn’t just have a Life Care Plan but ensure that it considers inflation and the fact that providing support to the child will become increasingly complex with age.
A good plan specifically isolates “economic damages”, ensuring that the financial roadmap covers more than simple survival and ensures the best possible quality of life. By not investing time in this detailed planning, you will find yourself relying excessively on government assistance or charity down the line. Get it right, and you will be able to maintain financial independence.
Endnote
Receiving a birth injury diagnosis is definitely one of the most challenging leadership experiences a parent can face. When you deal with it like a CEO, you go from uncertainty to stability. These strategic decisions not only resolve financial problems but also help you invest in your child’s future by ensuring a life based on what your child can do instead of what your child can’t afford. Just like a CEO protects their organization’s future, your wise financial decisions can safeguard your child’s bright future.
