If you’ve been injured at work, workers’ compensation may cover some of your losses. However, it may not cover all damages, particularly your non-economic ones. Depending on the circumstances of the accident, you could be eligible to file a third-party claim in addition to workers’ compensation. Please continue reading as we explore how third-party claims can impact your workers’ compensation benefits and how a seasoned New York City Work Injury Lawyer can help you explore all legal avenues for compensation.
What is a Third-Party Claim?
Generally, when you suffer a workplace injury, you are entitled to pursue a workers’ compensation claim. This is a no-fault system, meaning you don’t need to prove that your employer is at fault for your injury to recover compensation for your damages. However, you can only receive compensation for medical expenses, 2/3 of your lost wages, and certain disability benefits. You are not allowed to seek compensation for your pain and suffering. Depending on the unique circumstances of the accident, you may be entitled to take action outside of the workers’ compensation system for additional compensation.
A third-party claim, or personal injury lawsuit, is filed against someone other than your employer because their negligence caused or contributed to your injury. For instance, if you were injured at work because of defective machinery, you could have a valid claim against the manufacturer if the company knew about the danger and continued to sell the product. Through this legal claim, you can be compensated for the full extent of your losses. Essentially, this can increase your settlement considerably.
How Do Workers’ Compensation Liens Affect Third-Party Claims?
It’s important to understand that third-party claims can affect workers’ compensation benefits because if you file a successful personal injury lawsuit against a responsible party for your work injury, your employer’s workers’ compensation insurer may have the right to recoup some or all of the benefits they paid you. This is known as “subrogation,” which means you need to reimburse them from your third-party settlement. However, you can still pursue both a workers’ compensation claim and a third-party claim simultaneously. Keep in mind that any damages you recover from the third party for pain and suffering that aren’t covered by workers’ compensation are usually yours to keep.
New York law prohibits double recovery. While you are allowed to collect both workers’ compensation benefits as well as damages from a third-party action, you will be obligated to reimburse your employer for the workers’ compensation benefits you received. This is because you cannot receive compensation twice for the same injury. Therefore, the employer or their insurance carrier will typically place a lien on any third-party settlements to recoup the workers’ compensation they paid out and ensure individuals don’t receive more than they are legally entitled to for their damages.
If you’ve suffered a workplace injury and believe a third party may be responsible, it’s in your best interest to enlist the help of a determined New York City work injury lawyer from the Law Offices of Brian J. Elbaum, who can help protect your rights and assist you in negotiating with the workers’ compensation insurer to reduce the lien. This will ensure that you receive the maximum compensation possible. Connect with our firm today to learn how we can fight for you.
