Understanding Subrogation in Workers’ Compensation and Auto Accident Cases

If you’ve been injured on the job or in a car accident, you may have already heard the term subrogation. While it sounds complex, it’s an important concept that can affect your workers’ compensation claim, your personal injury case, and how much money you ultimately receive.

Understanding subrogation can help you make informed decisions and avoid unexpected surprises.

What Is Subrogation?

Subrogation is a legal principle that allows an insurance company to recover the money it has paid to you from another party who is responsible for your injury. In workers’ compensation cases, your employer’s insurance pays your medical bills and a portion of your lost wages. If another party caused your injury, like a negligent driver or a third-party contractor, the insurance company may seek reimbursement from that person or their insurer.

Essentially, subrogation in Maryland ensures that you are compensated fairly while preventing double recovery. You still receive the benefits you need, but the insurance company may step in to recover its costs from the responsible party.

Subrogation in Auto Accident Cases

In many cases, multiple people will file claims with numerous insurance companies.

For example, if you’re injured in a car accident that wasn’t your fault, your workers’ compensation benefits may cover medical expenses or lost wages. Your employer’s insurance then has the right to pursue subrogation against the at-fault driver’s insurance.

This process can be confusing, but it’s important to know that your workers’ compensation benefits won’t disappear. Subrogation is about recovering money for the insurer, not taking away what you are owed. An experienced attorney can help ensure that any settlement fairly accounts for your losses and the insurer’s subrogation rights.

Why Subrogation Matters

Gaining an understanding of subrogation is essential. It can affect how you negotiate settlements and manage legal claims. If you receive a third-party settlement, the insurance company may have a lien or claim to be reimbursed for any benefits they’ve already paid.

If you ignore subrogation, it can lead to disputes or delays in receiving your settlement.

Being aware of these rights early allows you and your attorney to plan strategically. You can protect your interests, ensure that liens are correctly calculated, and maximize the compensation you ultimately receive.

Protecting Yourself During the Process

Handling subrogation claims can be tricky without guidance. A skilled attorney will review the specifics of your case, calculate any subrogation liens, and negotiate with insurers to ensure your recovery is fair. In many cases, legal counsel can reduce the amount owed to the insurance company or structure the settlement so that you retain more of your award.

It’s also important to communicate with your employer’s insurance and any third-party insurers involved. Understanding your obligations and rights prevents costly mistakes and ensures a smoother resolution.

Moving Forward with Confidence

Subrogation in Maryland doesn’t have to be intimidating. With the proper knowledge and legal support, you can focus on recovering from your injuries while making sure your compensation is handled correctly.

At Shugarman & Mehring, we help clients navigate the complexities of subrogation in workers’ compensation and auto accident cases in Maryland. Our team ensures your rights are protected and your claims are managed effectively, so you can focus on healing.

If you’ve been injured and want to understand how subrogation might affect your case, contact Shugarman & Mehring for a consultation. We can guide you step by step and help you make informed decisions about your recovery and legal options.