Workers’ compensation can become tricky when a third party is at fault for the injury sustained. Workers’ compensation insurance usually protects employees who suffer workplace injuries. This insurance policy grants them financial remuneration for medical treatment and hospital bills. It also compensates them for the income they could not earn while getting treatment or recovering from their injuries.
Workers’ comp is straightforward. Most employers in the United States are legally required to have a workers’ compensation program to ensure that their employees have adequate coverage in the event of a workplace injury.
To be eligible for workers’ compensation insurance, an employee making a claim must have been involved in a work-related incident or have suffered an injury while performing job-related duties. This type of insurance provides “no-fault” coverage, which means that the employee receives the benefits without proving their employer was at fault or negligent.
Employee Recourse for Injuries Caused by Third Parties
But what if the employee was injured by the actions or negligence of a third party and not their employer? Furthermore, what if the incident occurred while the said employee wasn’t doing any work for the company? The third-party self-reporting option might be the most feasible solution.
Let’s say John was walking across the factory lot during his lunch break. A contractor hired by his employer had been working on the premises and had improperly installed scaffolding overhead. Then, John suffers an injury when scaffolding falls on him. He has options for legal recourse, including applying for workers’ comp or filing a third-party liability suit.
If John files for workers’ comp, he will receive the standard compensation for all other employees injured in the same facility. But if he files for third-party liability, he may get higher financial compensation from the contractor working for his employer.
Workers’ Comp Versus Third Party Liability
Remember that workers’ comp is a “no-fault” type of coverage, meaning injured workers don’t have to prove employer negligence or harmful action to get compensation. But in return for this privilege, injured employees forfeit the right to further legal action against their employer. It limits the compensation they receive to what is in the company’s workers’ comp plan.
In John’s case, going for a third-party claim is the better option, especially since the entity responsible for his injuries wasn’t his employer. Likewise, he wasn’t working when the injury occurred is immaterial, or else the contractor would be liable. It would differ from workers’ comp, which often honors work claims only if they suffered the injury while performing company-related duties.
Conclusion
Workers’ comp is still feasible for employees injured in the workplace. Sometimes, it may even be their only recourse. But if a third party causes the incident, they should consider filing a third-party liability claim instead.
About InsureMyWorkComp
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