InsuremyWorkersComp_3rdPartyWorkersCompensation

3rd party workers’ compensation is another form of workers’ comp that can help a person when they suffer an injury. But what is 3rd party workers’ compensation, and what does it do? We are here to discuss what  3rd party coverage is and provide real-life examples to illustrate how it works.

How Does 3rd Party Claim Differ From Workers’ Comp?

Workers’ comp is a no-fault system, meaning affected employees can get benefits regardless of who caused the injury. The only time it does matter is if the worker suffered an injury due to their own intoxication.

Third-party claims, however, involve seeking compensation from a party other than the employer or co-workers. Unlike workers’ compensation, where lawsuits against employers are generally barred, third-party claims allow injured workers to file lawsuits against the responsible party in civil court to seek additional damages.

To pursue a third-party claim, the injured worker must establish that the third party was negligent or at fault for the injury. 

Potential challenges 

  • Multiple parties involved: Determining each party’s level of responsibility and apportioning liability can be complex, especially in cases with shared responsibilities or contributory negligence.
  • Comparative negligence: In some jurisdictions, the injured worker will see a reduction in workers’ compensation because of their level of fault or negligence.
  • Inadequate compensation: Even if there is a liability, the compensation obtained from a third-party claim may not fully cover all the damages and losses suffered by the injured worker.

Examples of 3rd Party Workers’ Compensation

Here are a few examples of third-party workers’ compensation claims:

Defective Product

If an office worker suffers an injury while using defective equipment at work, they may have a third-party claim against the manufacturer or supplier of the product. 

Premises Liability

If an employee suffers an injury on someone else’s property while working, they may have a third-party claim against the property owner or occupier. For instance, if a delivery person slips and falls on a wet floor in a convenience store due to inadequate warning signs, they may pursue a third-party claim against the store owner.

Construction Accidents

It can include situations such as a scaffolding collapse, faulty equipment provided by a subcontractor, or an injury caused by the actions of another trade worker.

Toxic Exposure from Nearby Properties

If a worker suffers an illness due to toxic substances emanating from adjacent properties, they may have a third-party claim against the property owners responsible for the exposure.

Transportation Accidents

Employees involved in a transportation accident while using a company vehicle may file a claim against the at-fault driver or other responsible parties.

About Insure My Work Comp

Insure My Work Comp provides you with workers’ compensation insurance quotes from top-rated insurance companies. They also help small business owners with a quick and easy way to find affordable workers’ compensation coverage. With Insure My Work Comp, you can also get group disability insurance along with your employee benefit package.