What are the differences between a third-party claim and a workers' compensation claim?

The main difference between a third-party claim and a workers’ compensation claim is who pays out the settlement or award. A third-party claim is when an injured worker files a lawsuit against a third-party, such as a manufacturer responsible for a defective product or an employer who violated state or federal safety laws, for the damages they suffered from an industrial accident. A workers’ compensation claim is when an injured worker files a claim with their employer’s workers’ compensation insurance provider for the damages they suffered from an industrial accident. In New York, workers’ compensation claims are handled through the New York State Workers’ Compensation Board. This board is responsible for administering workers’ compensation benefits by determining eligibility, setting benefit amounts, and ensuring payments are made in a timely manner. If a worker is not eligible for workers’ compensation benefits, they may still be able to file a third-party lawsuit. In a third-party claim, the third-party entity, such as a manufacturer or employer, is held liable for all or part of the damages the injured worker suffered. In a workers’ compensation claim, the employer’s workers’ compensation insurance provider is the liable party and responsible for providing benefits and payment for the worker’s medical expenses, lost wages, and other damages. In a third-party claim, the court may award monetary compensation for all or some of the damages the injured worker suffered, including pain and suffering. In a workers’ compensation claim, the injured worker is limited to the amount of benefits approved by the New York State Workers’ Compensation Board.

What are the differences between a third-party claim and a workers' compensation claim?

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