Understanding Third-Party Workers’ Compensation Claims
A third-party workers’ compensation claim arises when a workplace injury involves someone other than the injured worker’s employer or a coworker. In these situations, the injured employee may have the option to pursue compensation from another person or company whose actions may have contributed to the injury. In some cases, this type of claim can exist alongside a traditional workers’ compensation claim.
Workers’ compensation is designed to provide benefits when an employee is injured on the job. These benefits may include payment of medical expenses and a portion of lost wages. Typically, the claim is filed through the employer’s workers’ compensation insurance, regardless of who caused the accident.
How a Third Party May Be Involved
Sometimes a workplace accident involves a separate business or individual. For example, a worker might be injured by defective equipment used on the job. Because the injury occurred while the employee was working, the worker may file a workers’ compensation claim through their employer’s insurance coverage.
However, if the injury was caused by a problem with the equipment—such as a design flaw or manufacturing defect—the company that designed, manufactured, or distributed that equipment could also bear responsibility. In that situation, the injured worker may consider filing a third-party claim based on product liability or another applicable legal theory.
Potential Impact on Employers
Third-party claims can sometimes affect employers as well. Depending on the circumstances, an employer or its workers’ compensation insurer may have the right to seek reimbursement for benefits paid to the injured employee if another party is ultimately found responsible for the accident. This process is often referred to as subrogation.
Why These Cases Can Be More Complex
When both workers’ compensation benefits and a third-party claim are involved, the legal and financial issues may become more complicated. Workers’ compensation claims focus on providing prompt benefits, while third-party claims may involve questions of negligence, product liability, or other legal standards. Each claim follows a different process and may involve different types of damages.
Because of these factors, it can be helpful for injured workers to understand all possible avenues for recovery after a workplace injury.
If you have questions about a workplace injury or a potential third-party claim, you may wish to speak with a workers’ compensation attorney about your situation.
The Law Office of Peter J. Carman, S.C. can provide additional information and discuss available legal options.
