Lump Sum Settlements

The issues caused by workplace injuries can leave employees grappling with numerous challenges, from physical recovery to financial uncertainty. For many injured workers, the prospect of a lump sum settlement under Maryland’s workers’ compensation laws offers a pathway to regain financial stability and move forward with their lives. A lump sum settlement allows an employee to receive a one-time payment rather than periodic benefits, providing the flexibility to address pressing needs or plan for the future. Agreeing to a settlement is a significant decision, however, that requires careful consideration. If you were hurt while working and are considering taking a lump sum settlement, it is important to understand your options, and you should speak to an attorney as soon as possible. The experienced Prince George’s County workers’ compensation attorneys at Foran & Foran, P.A. are proficient at handling complicated claims, and if you hire us, we can evaluate your case and inform you of what steps you should take to protect your interests. 

A lump sum settlement in a workers’ compensation case is an agreement between the injured employee and the employer’s workers’ compensation insurer to resolve the claim for a one-time payment. This settlement typically replaces the employee’s entitlement to ongoing benefits, such as temporary or permanent disability payments. In exchange for the lump sum, the injured worker agrees to release the employer and insurer from any further liability related to the workplace injury.

Lump sum settlements can be appealing for several reasons. They provide immediate financial relief, allowing injured workers to cover medical bills, pay off debts, or invest in their future. They also eliminate the uncertainty of relying on periodic payments, which may be subject to disputes or delays. These settlements also come with significant considerations, however, as accepting a lump sum may preclude the employee from seeking additional benefits if their condition worsens or new medical expenses arise.

The implications of a lump sum settlement can vary widely depending on the individual’s circumstances. For instance, workers with severe or permanent injuries may require long-term medical care or face diminished earning capacity. A settlement that does not adequately account for these needs could leave the individual without sufficient resources to manage their future expenses. Understanding the full scope of your injury, its impact on your life, and the value of your workers’ compensation claim is critical before agreeing to a settlement.

Under Maryland law, employees injured in the course and scope of their employment are eligible for workers’ compensation benefits, including medical expenses, wage replacement, and disability benefits. These benefits are intended to provide financial support while the employee recovers and adapts to any lasting impairments. However, employers and insurers may offer lump sum settlements to resolve claims and avoid the ongoing costs of providing benefits.

When evaluating a settlement offer, it is important to consider several factors. First, the settlement amount should reflect the full value of the employee’s claim, including current and future medical expenses, lost wages, and compensation for permanent disabilities. The settlement should also account for the employee’s ability to return to work, the likelihood of needing additional treatment, and the potential for complications related to the injury.

Maryland law requires workers’ compensation settlements to be approved by the Maryland Workers’ Compensation Commission to ensure they are fair and reasonable. This process includes a review of the terms of the settlement and a determination of whether the agreement adequately protects the injured worker’s rights. 

Lump sum settlements can provide injured workers with valuable financial resources and a sense of closure, but they also require careful evaluation to avoid potential pitfalls. If you are considering a lump sum settlement in your workers’ compensation case, it is essential to contact an attorney to protect your rights. At Foran & Foran, P.A., our knowledgeable Prince George’s County workers’ compensation attorneys dedicate their practice to helping injured workers seek fair outcomes, and if you engage our services, we can provide you with the guidance and support you need to make informed decisions about your workers’ compensation claim. Our office is conveniently located in Greenbelt, Maryland, and we proudly represent clients in Hyattsville, Silver Spring, Upper Marlboro, La Plata, Waldorf, Rockville, Bowie, and throughout Prince George’s County, Charles County, Montgomery County, and across Maryland. Contact us today at (301) 441-2022 or through our online form to set up a free and confidential conference.