Why Workers' Compensation Is Not Always the Full Picture
Workers' compensation was designed as a no-fault system: injured workers receive benefits without having to prove their employer was negligent, in exchange for giving up the right to sue the employer directly. This trade-off applies to claims against the employer.
It does not apply to claims against other parties. If a contractor, manufacturer, or another company contributed to your injury, you may be able to pursue a separate legal claim against them.
Who Can Be a Third Party
- Equipment and machinery manufacturers
- Maintenance and service contractors
- General contractors and subcontractors on the same site
- Property owners and premises operators
- Engineering firms
- Chemical and materials suppliers
- Staffing and labour hire companies
- Trucking and transport companies
- Safety equipment manufacturers
What Third-Party Claims Can Cover
Third-party claims can potentially allow recovery for losses that workers' compensation does not cover, including pain and suffering (where available under state law), full lost earnings rather than the fraction covered by workers' compensation, and other losses recognised under state tort law.
How the Two Routes Interact
In most states, bringing a third-party claim alongside workers' compensation is permitted. However, if you receive workers' compensation benefits and also recover from a third party, the workers' compensation insurer may have subrogation rights.
An attorney can advise on how these rules work in your state and how to manage both routes effectively.
How an Attorney Can Help
Identifying all potentially liable third parties — and gathering the evidence to support claims against them — requires careful investigation. An attorney can investigate the full circumstances, identify all potential defendants, and advise on the best approach. See also: workers' compensation vs lawsuit, defective equipment claims, and preserving evidence for your claim.
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