Workers’ compensation laws in North and South Carolina generally prohibit you from suing your employer after a work-related injury. Furthermore, workers’ compensation only pays for your medical bills, a portion of your lost income, and some other benefits. These benefits might not cover all your losses from an accident. However, third-party workers’ compensation claims let you seek additional compensation if someone other than your employer or a coworker caused your injuries. An experienced workers’ compensation lawyer can help you file a third-party claim.
What Is Third-Party Liability?
In a workers’ compensation case, third-party liability means someone other than your employer or a coworker caused or contributed to your injuries. As the injured worker, you’re the “first party” in these cases. Your employer (and their insurer) is the “second party” since they’re the party that pays for your medical care and other workers’ comp benefits. Therefore, anyone else involved in the incident leading to your injuries is a “third party.”
For instance, suppose you sustained injuries at work because of defective equipment. The maker of the defective equipment might bear third-party liability for your injuries because their malfunctioning product caused your injuries.
One important distinction to understand is that third-party claims are fault-based, unlike workers’ compensation, which operates as a no-fault system. To recover compensation through a third-party claim, you must demonstrate that the third party was negligent or otherwise legally responsible for your injuries.
Why Pursue a Third-Party Claim?
The main reason to pursue a third-party claim after suffering a work-related injury is that third-party claims can compensate you for losses workers’ comp doesn’t cover. Your workers’ comp benefits may include full coverage of your medical expenses, partial wage-replacement benefits, and job retraining to help you find a new career.
By contrast, a third-party claim lets you seek compensation for a broader range of losses you may have experienced, such as:
- The full amount of your lost wages
- Your reduced future earnings due to your injuries
- Your pain and suffering
- Your emotional distress
- Loss of enjoyment of life
- The cost to repair or replace any personal property damaged in the incident
Together, the money you may receive from your workers’ compensation and personal injury settlement can help you rebuild your life after a severe injury or illness.
Common Instances When You Can File a Third-Party Claim
Some common situations where you might have cause for a third-party claim include:
- Motor vehicle accidents occurring at a job site or while performing job-related duties, such as making deliveries or traveling between work sites, are caused by a negligent driver (this does not apply during personal errands or your regular daily commute).
- Accidents resulting from defective products or equipment improperly labeled by the manufacturer
- Premises liability, where a slip, fall, or similar incident results from a hazardous condition on property owned or controlled by someone other than your employer, such as a client’s facility, a construction site managed by a general contractor, or a third-party vendor’s property.
- Workplace fires or explosions resulting from a third party’s careless actions
- Toxic substance or chemical exposure, where the manufacturer or distributor of a harmful product failed to provide adequate warnings or safety information
- Subcontractor or co-contractor negligence is particularly common on multi-employer construction sites, where workers from different companies operate in shared spaces
Understanding Subrogation in Third-Party Claims
If you receive workers’ compensation benefits and later recover money from a third-party lawsuit (for example, from the at-fault driver in a car accident), your employer’s workers’ compensation insurance company may have the right to get some of its money back. This is called subrogation.
In both North and South Carolina, the workers’ compensation insurer can place a lien on your third-party settlement or judgment to recover the benefits it has already paid you. This lien can include medical benefits and indemnity (wage replacement) payments. However, the rules regarding subrogation are different in each state:
- In South Carolina, the insurer has a strong statutory right of subrogation and is generally entitled to full reimbursement, though an experienced attorney can often negotiate a reduction of the lien.
- In North Carolina, the insurer also has subrogation rights, but the amount it can recover may be reduced based on factors such as attorney fees, the worker’s share of the recovery, and court approval in some cases.
An experienced workers’ compensation attorney can help negotiate a fair reduction of the subrogation lien so that you keep as much of your third-party recovery as possible.
Contact Stewart Law Offices to Find Out if You Have a Third-Party Claim
Stewart Law Offices can file a workers’ comp and third-party claim if you sustained a severe injury or illness at work. We represent injured workers in both North and South Carolina, and we’ve recovered millions of dollars for them over the last several decades.* Call now or complete our contact form for a free consultation.