Workers’ Compensation vs. Third-Party Claims: What You Need to Know

When you're injured on the job, workers' compensation may cover medical bills and lost wages—but it limits your ability to sue your employer, even if they were negligent or at fault.

However, if someone outside your company contributed to your injury, you may have a third-party claim that allows for greater compensation.

What Workers’ Compensation Generally Covers

✅ Medical expenses for work-related injuries

✅ Lost wages (partial coverage)

✅ Disability benefits if you can't return to work

✅ Job retraining in some cases

Workers’ comp is a no-fault system, meaning you’re covered regardless of who caused the accident, including the employee him or herself. However, it generally prevents lawsuits against your employer and/or co-employees, and usually provides less compensation than a personal injury claim.

When Can You File a Third-Party Claim?

You may be able to sue for full damages (including pain and suffering) if your injury was caused by:

🔹 Defective equipment – A tool or machine malfunctioned due to a manufacturer’s flaw.

🔹 Negligent contractors – A worker from another company (e.g., a truck driver) caused your injury.

🔹 Unsafe property conditions – The property owner failed to maintain a safe worksite.

Can You Sue Your Employer?

❌ No – Workers’ compensation laws prevent lawsuits against your employer in most cases.

✅ Yes, but only if a third party (another company, manufacturer, or individual) is responsible.

What If You’re an Independent Contractor?

• Independent contractors usually don’t qualify for workers’ compensation.

• However, they can sue if a company’s negligence caused their injury.

• Some employers misclassify workers as contractors to avoid liability—this can be legally challenged.

  
  

Why Third-Party Claims Matter

Lawyers can

investigate whether a third party contributed to a workplace injury. A successful third-party claim can provide:

✔️ Higher compensation than workers’ comp alone

✔️ Pain and suffering damages

✔️ Full lost wages and future earnings

Key Takeaway

• Workers’ compensation is limited. If another party caused your injury, you may be entitled to more through a third-party lawsuit.

• If you’re unsure, consult an attorney to explore your options.