In workers’ compensation, what is meant by a third-party claim?

A third-party claim in the context of workers' compensation refers to a situation where an employee who has suffered a work-related injury seeks compensation from a party other than their employer, based on the negligence of that party. This typically occurs when a third party, such as another contractor, a manufacturer of faulty equipment, or a driver in an automobile accident, is deemed responsible for the injury that the employee sustained while performing their job duties.

In such cases, the employee may pursue this claim to recover damages that might not be covered under their employer's workers' compensation insurance, which provides limited benefits primarily related to medical expenses and lost wages. By filing a third-party claim, the injured worker can seek additional compensation for pain and suffering, loss of future earnings, and other damages that may exceed workers' compensation benefits.

This distinction is important because workers' compensation laws typically prevent employees from suing their employers for work-related injuries, which is why third-party claims become a crucial avenue for employees to seek proper relief when their injuries are the result of someone else's negligence.