If you’ve suffered a workplace injury, workers’ compensation will cover a portion of your losses. However, workers’ compensation has certain limitations. If a third party is responsible for your injuries, you may be eligible to file a third-party claim. This claim allows you to seek additional compensation beyond what workers’ compensation benefits provide. Please continue reading to learn what happens if a third-party award exceeds workers’ compensation liability and how our determined Essex County Workers’ Compensation Attorneys can assist you.
What is a Third-Party Claim?
Generally, you can file a workers’ compensation claim whenever you are injured while performing duties within the scope of your employment. Workers’ compensation operates under a no-fault system, meaning you are entitled to recover benefits even if the injury was partly your fault, as long as your injuries weren’t intentionally self-inflicted, caused by intoxication, or the result of horseplay. It’s important to understand that workers; compensation laws typically prevent an injured party from suing their employer directly. However, depending on the unique circumstances of an accident, you may be able to take legal action outside the workers’ compensation system.
If you file a third-party claim, it means you are taking legal action against someone other than your employer because their negligence either caused or contributed to your injury. These claims are also referred to as personal injury lawsuits. Although workers’ compensation provides a relatively easy path to benefits, as there is no need to prove employer fault, it only covers 2/3 of lost wages and excludes compensation for pain and suffering. Conversely, a valid third-party claim offers full compensation for lost wages and non-economic damages, significantly increasing potential settlement amounts.
Will I Have to Return My Workers’ Compensation Award if I File a Third-Party Claim After a Work Injury?
You should note that your employer’s workers’ compensation insurer may place a lien on any third-party settlement you receive. This lien allows the insurer to be reimbursed for a portion of the benefit they already provided since your damages are no longer the exclusive responsibility of your employer. Essentially, New Jersey law prohibits an injured party to double recover from both their employer’s workers’ compensation insurance and the third party’s insurance carrier. While you are entitled to file a claim for workers’ compensation benefits and a third-party claim, your employer has the right to be repaid.
If the third-party settlement exceeds workers’ compensation liability, it’s important to enlist the help of an experienced attorney who can negotiate to reduce the lien on your award. The primary goal of a lien is to prevent double recovery. However, this can leave you under-compensated. As such, an attorney can argue for a reduced lien to help you retain a larger portion of your third-party compensation.
As you can see, the link between workers’ compensation and third-party claims is complex. If you’ve suffered a work injury and believe a third party may be responsible, please don’t hesitate to contact an attorney from the Law Offices of Christopher T. Howell, Esq. who can help you explore all available avenues of compensation. Connect with our firm today to learn how we can fight for you.
