Have you suffered a workplace injury? If so, workers’ compensation will typically cover a portion of your damages. However, workers’ compensation has limitations, particularly when it comes to non-economic damages. Depending on the circumstances of the accident, you may be eligible to file a third-party claim. Please continue reading as we explore how workers’ compensation liens affect third-party claims in Maryland and how an experienced Prince George’s County Work Injury Lawyer can assist you.
What is a Third-Party Claim?
First, you should note that you can file a workers’ compensation claim whenever you are injured during the course of your employment. This is a no-fault system, meaning you are entitled to receive benefits even if the injury was partly your fault. Unfortunately, workers’ compensation claims don’t provide compensation for pain and suffering, emotional distress, or future lost earnings. Therefore, you may be entitled to pursue a third-party claim for additional compensation.
With a third-party claim, you are taking legal action against someone other than your employer because their negligence either caused or contributed to your injuries. These claims are also known as personal injury lawsuits.
Will I Have to Return My Workers’ Compensation Award if I File a Third-Party Claim?
If you file a third-party claim after receiving workers’ compensation benefits, Maryland law allows the workers’ compensation insurer to place a lien on your recovery. This means that a part or all of the compensation you receive from the third-party settlement will be used to reimburse the insurer for the workers’ compensation benefits they provided.
When you take legal action against a third party responsible for your work-related injury, your employer’s workers’ compensation insurance carrier has the right to recoup the benefits they paid to you from the settlement you receive because “double recovery” is prohibited. In Maryland, you cannot receive compensation twice for the same work-related injury from both your employer’s worker’s compensation insurance and a separate lawsuit against a third party responsible for the injury. The goal is to prevent individuals from receiving more compensation than they are legally entitled to for their damages.
It’s important to enlist the help of a skilled personal injury attorney who can help you negotiate with the workers’ compensation insurance carrier to reduce the lien. This is vital as it will ensure that you receive the full and fair compensation you are entitled to for your losses.
As you can see, the relationship between third-party and workers’ compensation claims is complex. If you are considering filing a third-party claim in Maryland, it’s in your best interest to consult with an experienced attorney from Timian & Fawcett, LLC, who can advise you on your rights and help you navigate the process of managing workers’ compensation liens.
