Pros And Cons Of Lump Sum Settlements In Maryland Workers’ Compensation Claims

Work-related injuries can have devastating impacts on your health, leaving you unable to work while facing heavy and ongoing medical costs. Our Maryland workers’ compensation attorney helps you get the benefits you are entitled to in a claim. Find out some of the pros and cons in terms of period payments or accepting a lump sum settlement.

The Benefits of Getting A Lump Sum Maryland Workers’ Compensation Settlement

Workers’ compensation is a federally mandated program that is administered by the state. It acts as a form of insurance when work-related injuries happen, helping to cover the costs of your medical expenses and any lost wages during your recovery.

When accidents happen or injuries in the workplace otherwise occur, you will need to notify your employer immediately, seek medical attention, and file a claim through the Maryland Workers’ Compensation Commission. To get your claim approved, you will be required to provide certain documents and evidence, such as accident reports detailing the circumstances surrounding your injuries and medical records showing the causal relationship or your injury to your employment and the extent of harm you suffered.

Once your claim is approved, your ongoing reasonable, necessary, and related medical care is covered, and you may be entitled to reimbursement for up to two-thirds of your lost wages while you are temporarily totally unable to work. If after you have completed your treatment and returned to work, you still suffer from permanent partial disabilities, you may be entitled to additional compensation. These are typically paid out in bi-weekly or monthly payments. However, there are some situations in which a lump sum settlement is possible. The benefits of pursuing this as an option in your Maryland workers’ compensation case include:

• It provides the immediate financial relief you and your family need when dealing with severe injuries and those resulting in permanent disabilities;
• It allows you to negotiate amounts, which can prove useful if your claim is disputed or you lack evidence;
• It prevents having to deal with your employer on an ongoing basis, which could be a source of serious friction;
• It saves you time and the anxiety of waiting for periodic payments.

What You Need To Know Before Accepting A Lump Sum Settlement in Maryland

Considering all the benefits of getting a lump sum settlement in your Maryland workers’ compensation claim, it may seem like the obvious best option. However, there are some disadvantages. Here is what you need to know before accepting:

• In exchange for a lump sum payment, you may be required to give up your rights to seek future medical treatment and lost wages from the injury;
• Seeking a lump sum settlement may be more difficult or time-consuming than getting approved for periodic benefits;
• It is generally more difficult to manage money received in a lump sum settlement;
• Under the Maryland Statutes, once you accept a lump sum workers’ compensation settlement, you waive your right to any future compensation.

Contact Our Maryland Workers’ Compensation Attorneys To Protect Your Rights

Considering a lump sum settlement for work-related injuries? Contact Berman | Sobin | Gross LLP.  To protect your rights, request a consultation with our Maryland workers’ compensation attorney today.

Sources:

wcc.state.md.us/

casetext.com/statute/code-of-maryland/article-labor-and-employment/title-9-workers-compensation