How Do Third-Party Claims Affect Workers’ Compensation?

Have you suffered a workplace injury? If so, workers’ compensation will typically cover a portion of your damages. However, workers’ compensation has limitations, particularly when it comes to non-economic damages. Depending on the circumstances of the accident, you may be eligible to file a third-party claim. Please continue reading as we explore how workers’ compensation liens affect third-party claims in Maryland and how an experienced Prince George’s County Work Injury Lawyer can assist you.

What Does Workers’ Compensation Cover in Maryland?

First, you should note that you can file a workers’ compensation claim whenever you are suffering an injury arising out of and in the course of your employment. This is a no-fault system, meaning you are entitled to receive benefits (in most cases) even if the injury was partly your fault. In the state of Maryland, workers’ comp benefits typically include payment of medical bills and partial replacement of lost wages incurred as a result of the injury or illness.

What Other Benefits Can Injured Workers Receive?

Through workers’ compensation, victims of an accident may also be entitled to benefits including medical care, supplemental benefits, and death benefits, along with the above cash benefits. If an employee is not able to work anymore, they may be entitled to long-term benefits that can help them sustain their quality of life.

Individuals who have been injured due to a workplace accident should seek medical attention to make sure they are in good health and to document their injuries. This can prove the extent of the injuries to collect the proper amount of workers’ compensation.

What Doesn’t Workers’ Compensation Cover?

Unfortunately, workers’ compensation claims don’t provide compensation for non-economic losses such as pain and suffering or emotional distress. Therefore, you may be entitled to pursue a third-party claim for additional compensation.

What Is a Third-Party Claim?

Can I Sue My Employer or a Third Party for a Workplace Injury?

Although (in most cases) you cannot file a lawsuit against your employer when you collect workers’ compensation, you are able to file a lawsuit against a third party. With a third-party claim, you are taking legal action against someone other than your employer because their negligence either caused or contributed to your injuries. These claims are also known as personal injury lawsuits.

What Is the Difference Between a First-Party and a Third-Party Insurance Claim?

Typically, a third-party claim is made against the at-fault party’s liability insurance. When you file a claim with your insurer, it’s considered a first-party claim. On the other hand, when you file a claim with someone else’s insurance company, typically under their liability coverage, it’s considered a third-party claim.

What Damages Are Available in a Third-Party Claim?

Since a third-party claim is a personal injury lawsuit (and not a workers’ compensation claim), you can recover certain damages that workers’ compensation does not. Generally, in a third-party claim, you can recover compensation for both your economic and non-economic damages.

Economic Damages

Economic damages represent your out-of-pocket expenses. Essentially, they refer to your tangible losses. This may include:

• Past and future medical bills
• Lost wages
• Household services
• Property damage

Non-Economic Damages

Non-economic damages refer to the class of damages that are subjective losses that are not quantifiable. This may include:

• Pain and suffering
• Emotional distress
• Inconvenience
• Loss of consortium (a joint claim available to married couples)
• Loss of enjoyment of life

What Must I Prove to Recover Damages in a Third-Party Claim?

Importantly, before you can recover compensation for your economic and non-economic damages in a third-party claim, you must fulfill the burden of proof, meaning you must prove the at-fault party’s negligence directly caused your injuries. Unlike workers’ compensation, a third-party claim in Maryland can be barred if you were even partly at fault for the accident, under the state’s contributory negligence rule.

Will I Have to Return My Workers’ Compensation Award if I File a Third-Party Claim?

If you file a third-party claim after receiving workers’ compensation benefits, Maryland law allows the workers’ compensation insurer to place a lien on your recovery. This means that a part or all of the compensation you receive from the third-party settlement will be used to reimburse the insurer for the workers’ compensation benefits they provided.

Why Can the Workers’ Comp Insurer Recoup Benefits From My Settlement?

When you take legal action against a third party responsible for your work-related injury, your employer’s workers’ compensation insurance carrier has the right to recoup the benefits they paid to you from the settlement you receive because “double recovery” is prohibited. In Maryland, you cannot be paid twice for the same losses; the carrier is reimbursed for benefits it paid, and you keep the remainder. The goal is to prevent individuals from receiving more compensation than they are legally entitled to for their damages.

Can an Attorney Help Reduce a Workers’ Compensation Lien?

It’s important to enlist the help of a skilled personal injury attorney who can help you negotiate with the workers’ compensation insurance carrier to reduce the lien. This is vital as it will maximize your chances of receiving the full and fair compensation you are entitled to for your losses.

Speak With a Maryland Third-Party Claim Attorney

As you can see, the relationship between third-party and workers’ compensation claims is complex. If you are considering filing a third-party claim in Maryland, it’s in your best interest to consult with an experienced attorney from Timian & Fawcett, LLC, who can advise you on your rights and help you navigate the process of managing workers’ compensation liens.