Workers’ Compensation Versus Third-Party Liability – What Type of Claim Should You File?

Work injuries cause more than create physical strain; they can also result in financial difficulties for workers and their families. For this reason, employees should understand their rights, including their right to pursue a workers’ compensation and/or a third-party liability claim. The following information explains the difference between these two types of work injury claims, and provides details on where injured workers can turn when they need assistance.

Since most employers are required to carry workers’ compensation coverage, injured workers are generally eligible for benefits. This type of claim usually covers the expenses for medical care and treatment, and may provide the employee with a portion of their wages while they are unable to work. In cases of disability, the worker may be eligible for temporary or permanent disability. Unfortunately, the benefits offered through workers' compensation are limited. Only a portion of wages are covered, and even the disability claims have a maximum payout amount. As a result, injured workers and their families may be at risk for injury-induced poverty.

When an employee is injured by the negligence or recklessness of someone other than their employer, compensation through a third-party liability lawsuit may be owed. Some examples of third-party liability include:

• An injury caused by defective equipment, tools or machinery;
• An accident on the premises of a party other than the employer; and
• Safety provision failures on the part of a secondary employer.

This type of claim is different because it is not filed through the injured worker's employer. Instead, it is pursued as a lawsuit against the negligent party. In the case of defective equipment, the manufacturer might be held responsible. If the accident was a matter of premises liability, the owner of the property could be sued. Secondary employers, such as those who hire temp workers, could be held liable for safety failures.

All too often, employees assume they can only file one claim or the other, or are unaware that they may have the option of filing a third-party liability claim. For this reason, all injured employees should have their case analyzed by an experienced work injury lawyer. This can help ensure all aspects are considered, and that all negligent parties are held accountable for their actions. Further, it can increase the chances that the employee receives the maximum compensation for their injuries. This, in turn, reduces the risk of financial devastation for injured workers and their families.

Despite what anyone has told you, you do not have to pursue a claim on your own. Instead, you and your loved ones can turn to the seasoned San Jose work injury lawyers at Corsiglia, McMahon & Allard, LLP for assistance. Dedicated to your best interests and prepared to fight for you, we strive for the most compensation possible in every situation. Call (408) 289-1417 and schedule your free consultation to learn more.

• The Basics of Workers’ Compensation
• Division of Federal Employees' Compensation (DFEC)