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How can Third-Party Lawsuits Help Injured Employees?

BY: Randolph and Associates | December 14, 2021 | Third Party Claims

Workplace injuries are all too common. They can leave people dead or disabled for life. In most instances, workers cannot sue their employers for workplace injuries. Instead, employees file workers’ compensation claims.

Though workers’ compensation typically covers medical costs and a percentage of the wounded party’s pay, some injuries call for additional recompense. This is where third-party lawsuits come into play.

When are third-party lawsuits filed?

Third-party liability occurs when an entity other than the employer causes an injury. Cases are frequently filed for construction accidents caused by a contractor or faulty equipment, car accidents that occur while an employee is on the clock, and manufacturing or design defects. If an injury occurs as a result of a third party’s action or negligence, the injured employee may be able to file suit against that person or company. Of course, the exact circumstances of the incident dictate whether a court case is worth pursuing and how much money an employee may receive in damages.

Why are third-party lawsuits necessary?

Workers’ compensation payouts are typically less than a person’s working wage. In addition, they may not cover all medical expenses incurred as a result of the injury. Courts can award non-economic damages in third-party cases. This includes compensation for pain suffering and mental hardship. Judges may also impose punitive damages against the negligent party.

Though workers’ compensation helps injured employees endure tough times, it does not compensate them at their working rate or provide funds for pain and suffering. For further restitution, a worker may seek to file a third-party lawsuit.

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