While the liable party for an on-the-job injury might be an employer, it could also be another entity. For instance, a contractor or equipment manufacturer might bear responsibility. Therefore, recoverable damages could come from workers’ compensation insurance, a third-party personal injury claim or both.
Each route offers different benefits and considerations for the injured worker. As a result, it is important for workers to understand differences in each means of financial recovery.
Non-economic damages for pain and suffering
One significant difference between the two avenues lies in the compensation for pain and suffering. In Massachusetts, workers’ compensation benefits do not include any provisions for pain and suffering. Instead, it focuses solely on medical expenses and lost wages.
On the other hand, third-party personal injury claims allow injured employees to seek and recover damages for the resulting physical and emotional pain. Therefore, reviewing a case closely to determine if a third party bore any responsibility for injuries could mean higher compensation.
Compensation for scarring
Workers’ compensation may provide benefits for scars but with limitations. Only scars on specific areas of the body, such as the hands, neck or face, are eligible for compensation. Moreover, there is typically a cap on the amount of compensation for scarring.
Third-party personal injury claims offer broader coverage for scarring. Injured workers can seek damages for scars anywhere on their body due to the negligence of a third party. Also, there is no cap on the compensation for scarring in these cases.
Recovery of lost wages
Under workers’ compensation, injured workers receive a percentage of their average weekly wage if they are unable to work due to their injuries. However, this compensation may only cover up to a certain percentage of their wages.
In contrast, successful third-party personal injury claims can entitle employees to 100% of their lost wages. This includes compensation for both past and future lost earnings.
Burden of proof
In workers’ compensation cases, proving fault is not necessary. The system operates on a no-fault basis. This means that benefits are available regardless of who caused the accident. The only exception could be when a worker intends to harm himself or herself.
Third-party personal injury claims require establishing someone’s negligence or wrongful act. Of course, this party cannot be the employer. This entails demonstrating that the third party’s carelessness or maliciousness led to the employee’s injuries.
While workers’ compensation and third-party personal injury claims aim to provide financial relief to injured workers, they differ in key areas. Understanding these distinctions can help injured employees navigate their options and pursue the compensation they rightfully deserve.
