When a Maryland worker is injured on the job, the workers’ compensation system offers a critical financial lifeline through medical coverage and wage replacement benefits. While many workers receive ongoing benefits through regular payments and treatment approvals, others may choose or be offered the option of a lump-sum workers’ compensation settlement that resolves all or part of their claims. These settlements can provide financial certainty and help injured workers move forward, but they also have legal consequences. If you were hurt while working and have questions about your right to recover workers’ compensation benefits, it is in your best interest to talk to an attorney. At Foran & Foran, P.A., our experienced Prince George’s County workers’ compensation attorneys are skilled at evaluating, negotiating, and finalizing workers’ compensation settlements, and if we represent you, we can help you take the steps necessary to protect your rights and long-term interests.
Understanding the Workers’ Compensation Settlement ProcessThe process of reaching a workers’ compensation settlement in Maryland typically begins after a worker has received initial treatment and the extent of the injury has become clearer. In many cases, a settlement discussion arises when the worker reaches what is known as maximum medical improvement, which means the condition is unlikely to improve significantly with further treatment. At that stage, both the worker and the insurer may begin to consider resolving the claim through a negotiated settlement. There are two primary types of workers’ compensation settlements under Maryland law: a settlement agreement under Section 9-722 of the Maryland Workers’ Compensation Act and a stipulation and award agreement.
A settlement under Section 9-722 is generally a full and final resolution of the claim, in which the worker agrees to release the insurer from future liability for the injury in exchange for a lump-sum payment or structured settlement. In contrast, a stipulation and award typically resolves only the amount of compensation for permanent disability while leaving medical benefits open. Both types of settlements must be approved by the Maryland Workers’ Compensation Commission to ensure they are fair and in the best interests of the injured worker. The Commission will consider factors such as the nature of the injury, the worker’s future medical needs, and the adequacy of the proposed payment.
Settlements can be attractive for workers who want to avoid future disputes with insurers or need immediate financial support. However, entering into a settlement means giving up certain rights, including the right to request additional medical treatment or wage replacement in the future. That is why it is essential to fully understand the long-term implications of any settlement before signing an agreement.
Considerations and Pitfalls in Workers’ Compensation SettlementsWorkers’ compensation settlements in Maryland can offer financial relief, but they are also complex and sometimes confusing. One of the most important considerations is the valuation of the injury. Insurers often calculate a settlement based on the worker’s degree of permanent impairment, future medical costs, and potential wage loss. However, these estimates may not reflect the true scope of the worker’s future needs. Without a clear understanding of what benefits they are giving up, injured workers risk accepting settlements that are far too low.
Insurers may also try to resolve claims quickly before the worker fully understands the extent of the injury or completes medical treatment. In some cases, settlements may fail to account for future surgeries, therapy, or long-term medications. Once a full and final settlement is approved, the worker may be left without recourse if the condition worsens. For this reason, legal representation is critical to assess the fairness of the proposed terms and ensure that the worker is not waiving essential rights without adequate compensation.
The Maryland Workers’ Compensation Commission reviews all settlement agreements and will not approve one unless it is in the best interest of the injured worker. However, the Commission’s review is not a substitute for personalized legal advice. While the Commission may identify obvious deficiencies, it is the worker’s attorney who will carefully analyze medical records, employment history, and expert evaluations to determine a fair settlement amount. The attorney will also identify potential benefits the worker may be entitled to keep open, such as future medical treatment or vocational rehabilitation, depending on the structure of the settlement.
Meet with an Experienced Prince George’s County Workers’ Compensation Lawyer About Your OptionsWorkers’ compensation settlements can be an important tool for resolving disputes and achieving financial closure after a work-related injury. However, settling a workers’ compensation claim is a serious decision that should never be made without understanding the consequences. If you were hurt while working and want to learn more about workers’ compensation settlements, you should meet with a lawyer as soon as possible. At Foran & Foran, P.A., our experienced Prince George’s County workers’ compensation attorneys negotiate aggressively on behalf of our clients, and if you engage our services, we will fight to help you seek the maximum benefits available for the harm you have suffered. Our office is located in Greenbelt, Maryland, and we represent clients throughout Prince George’s County, Montgomery County, Charles County, and other areas across the state. To schedule a free and confidential consultation, contact us online or call (301) 441-2022.