Don’t Leave Money on the Table: Understanding Loss of Use Benefits in New Mexico Workers’ Compensation
If you’ve been injured on the job in New Mexico, you’re likely focused on getting medical treatment and returning to work. But there’s a crucial benefit that many injured workers never receive simply because they don’t know it exists: loss of use compensation. This isn’t a small oversight. We’re talking about potentially thousands of dollars in benefits that you may be entitled to receive as a result of your injury—money that could help you and your family during a difficult time. Yet employers and insurance carriers rarely, if ever, volunteer this information to injured workers.
What Is Loss of Use Compensation?
Loss of use compensation, sometimes called “permanent partial disability,” provides payment when a work-related injury results in permanent limitations to a body part—even if you haven’t lost the limb itself. Think of it this way: if your shoulder injury leaves you with reduced range of motion, chronic pain, or weakness that affects your daily activities, you may be entitled to compensation for that permanent loss of function. The same applies to injuries affecting your back, knees, hands, or any other body part. This compensation is separate from your medical benefits, impairment rating, or wage replacement. It recognizes that even after you’ve healed as much as possible, your injury may have left you with permanent limitations that affect your quality of life.
The Problem: A Benefit Hidden in Plain Sight
Here’s what most injured workers don’t realize: insurance carriers often act as though they are under no obligation to proactively inform you about loss of use benefits. In fact, they rarely do. Why? The answer is straightforward—it’s not in their financial interest. Every dollar paid in loss of use compensation comes out of their bottom line. By simply staying quiet about this benefit, insurers save money while injured workers unknowingly forfeit compensation they’re legally entitled to receive. There is no set formula for loss of use. For this reason, many insurers pay the lowest amount possible for loss of use benefits. If you feel the amount of benefits being offered to you is too low, you may be correct.
How Much Money Are We Talking About?
The value of loss of use benefits varies based on the severity of your impairment and which body part is affected. New Mexico law assigns a different number of weeks and values to different body parts, and compensation is calculated based on the effect the injury has on a worker’s abilities and activities of daily living. For some injuries, loss of use benefits can amount to several thousand dollars—sometimes tens of thousands. That’s real money that could help with ongoing expenses, adaptive equipment, or simply provide financial security after a life-changing injury.
Why You Need an Attorney
This is where legal representation becomes critical. An experienced workers’ compensation attorney knows to evaluate your case for loss of use benefits. They understand:
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- When to request impairment ratings: Timing matters. Your attorney will ensure you receive a proper medical evaluation to determine your permanent impairment percentage, which is a part of the loss of use calculation.
- How to challenge low ratings: Insurance company doctors sometimes provide conservative impairment ratings. Your attorney can obtain independent evaluations and fight for accurate assessments.
- How to calculate proper compensation: Arguing for loss of use benefits can be complex. An attorney helps ensure you receive every dollar you’re entitled to.
- How to navigate the claims process: There are deadlines, procedures, and legal requirements that must be met to secure benefits.
Without an attorney, most injured workers simply don’t know to ask for these benefits. Even if they do, they may not know how to pursue them effectively or realize when they’re being undervalued.
The Bottom Line
If you’ve suffered a work-related injury in New Mexico that has left you with permanent limitations, you likely qualify for loss of use compensation. But you probably won’t receive it unless you actively pursue it—and that almost always requires legal representation.
Don’t assume that the insurance company will do the right thing and offer you all available benefits. Their job is to minimize costs, not to maximize your compensation. Your job is to protect your interests, and that means getting informed and getting help.
Important Legal Reminder
This article provides general information about New Mexico workers’ compensation law and is not legal advice. Every case is different, and the specific facts of your situation will determine what benefits you may be entitled to receive. If you’ve been injured at work, consult with a qualified workers’ compensation attorney who can evaluate your individual case and advise you of your rights and options. I’m not a lawyer or financial advisor, and you should speak with a licensed professional in New Mexico for guidance specific to your circumstances.
