What’s the Difference Between a Workers’ Compensation & a Third-Party Claim?

After a workplace injury in New Jersey, many people are told to file a workers’ compensation claim and stop there. That advice is not always complete. In some situations, an injured worker may have more than one legal option, and understanding the difference between a workers’ compensation claim and a third-party claim can directly affect the compensation available. These two types of claims serve different purposes, follow different rules, and can sometimes exist side by side. Continue reading and reach out to the seasoned Jersey City workers’ compensation lawyers here at Lerner, Piermont, Riverol & Lawlor, P.A. to learn more. Here are some of the questions you may have:

What Is a Workers’ Compensation Claim?

Workers’ compensation is a no-fault system designed to provide benefits to employees who are injured on the job, regardless of who caused the accident. In New Jersey, most employers are required to carry workers’ compensation insurance. A workers’ compensation claim typically provides:

• Coverage for reasonable and necessary medical treatment
• Temporary disability payments if you cannot work
• Permanent disability benefits for lasting injuries
• Death benefits for surviving dependents in fatal cases

In exchange for these guaranteed benefits, workers generally cannot sue their employer directly for negligence. Pain and suffering damages are not available through workers’ compensation, which is an important limitation many injured workers do not realize at first.

What Is a Third-Party Claim and When Does It Apply?

A third-party claim is a personal injury lawsuit filed against someone other than your employer whose negligence contributed to your workplace injury. These claims are fault-based, meaning you must show that another party acted carelessly. Some examples of potential third-party claims include:

• A construction worker injured by defective equipment made by an outside manufacturer
• A delivery driver hit by a negligent motorist while on the job
• A maintenance worker hurt due to unsafe conditions at a property owned by another company

Unlike workers’ compensation, a successful third-party claim may allow recovery for damages that go beyond basic benefits. This can include pain and suffering, emotional distress, and full lost wages, which are not available through workers’ compensation alone.

Ultimately, the difference between a workers’ compensation claim and a third-party claim is not just technical. It can shape the financial future of an injured worker and their family. Workers’ compensation provides fast, limited benefits without proving fault, while third-party claims focus on accountability and full compensation.

If you’ve been injured on the job and believe you’re entitled to compensation, please don’t hesitate to contact the dedicated legal team here at Lerner, Piermont, Riverol & Lawlor, P.A. for a free initial consultation today.