If you’re injured on the job, you may assume that workers’ compensation is your only source of financial recovery. While workers’ compensation provides important benefits for many injured employees, it doesn’t always prevent you from pursuing a claim against someone other than your employer.
In some workplace accidents, a third party’s negligence contributes to the injury. When that happens, you may be able to file a workers’ compensation claim and pursue a separate personal injury lawsuit against the responsible third party. Understanding the difference between these claims can help you protect your rights and maximize the compensation available after a serious workplace injury.
What Is a Workers’ Compensation Claim?
Michigan workers’ compensation system provides benefits to employees who suffer work-related injuries or occupational illnesses, regardless of who was at fault for the accident.
Depending on the circumstances, workers’ compensation may provide:
- Medical treatment
- Wage-loss benefits
- Vocational rehabilitation, when appropriate
- Benefits for certain permanent disabilities
In exchange for these benefits, employees generally can’t sue their employer for ordinary negligence arising from a workplace injury.
What Is a Third-Party Claim?
A third-party claim is a personal injury lawsuit brought against someone other than your employer whose negligence contributed to your workplace injury.
Unlike workers’ compensation, a third-party claim is based on proving that another person or business acted negligently and caused your injuries.
Since these claims involve different legal rights and remedies, it’s possible for both a workers’ compensation claim and a third-party lawsuit to arise from the same accident.
Who Might Be a Third Party?
Many workplace accidents involve individuals or companies that aren’t the injured workers’ employer.
Examples of potentially liable third parties include:
- Negligent drivers who cause work-related accidents
- Contractors or subcontractors on a job site
- Property owners
- Manufacturers of defective equipment or machinery
- Maintenance companies
- Vendors or suppliers
Identifying all potentially responsible parties is an important part of evaluating your legal options after a workplace injury.
How Is a Third-Party Lawsuit Different From Workers’ Compensation?
Although both claims arise from the same injury, they serve different purposes.
Workers’ compensation generally provides benefits without requiring proof that anyone was negligent.
A third-party lawsuit, however, requires the injured worker to prove that the third party’s negligence caused the accident.
Another important difference is the types of compensation available. While workers’ compensation benefits are limited by statute, a successful third-party lawsuit may allow recovery for additional losses that workers’ compensation does not cover.
Can You Receive Both Types of Compensation?
In many cases, yes. An injured worker may receive workers’ compensation benefits while also pursuing a third-party personal injury claim.
However, these claims can interact in important ways. For example, Michigan law may allow a workers’ compensation insurer to seek reimbursement for certain benefits it paid if the injured worker later recovers compensation from a third party.
Since these issues can impact the amount ultimately recovered, careful coordination of both these claims are important.
What Compensation May Be Available in a Third-Party Claim?
Depending on the facts of the case, a third-party lawsuit may allow an injured worker to seek compensation for things like medical expenses, pain and suffering, lost wages, and permanent disability.
The exact damages available depend on the nature of the injuries, the evidence presented, and the circumstances of the accident.
Evidence Is Critical
Whether pursuing workers’ compensation benefits, a third=party lawsuit, or both, preserving evidence is essential.
Helpful evidence commonly includes things like accident reports, witness statements, medica records, and photos of the accident scene.
The sooner evidence is preserved, the stronger your claim may be.
Why Legal Guidance Matters
Determining whether a third-party claim exists requires a careful investigation of the accident and the parties involved. Working with Duff Law can help injured workers identify all potential sources of compensation and coordinate both claims effectively.
An experienced attorney can investigate the accident, determine whether a third party may be liable, handle communications with insurance companies, and pursue the full compensation available under Michigan law.