Workers' Compensation vs. a Personal Injury Claim

If you were injured on the job, you may have heard both "workers' compensation" and "personal injury." They are different systems, and sometimes a workplace accident involves both.

Workers' compensation in brief

Workers' compensation is a no-fault insurance system for employees. If you are hurt at work, you can generally receive certain benefits regardless of who caused the accident, such as:

• Payment for medical treatment related to the injury
• A portion of lost wages while you cannot work
• Benefits for permanent impairment, in some cases
• Death benefits for families, in the case of a fatal workplace accident

The tradeoff is that workers' compensation is usually the exclusive remedy against your employer, meaning you generally cannot sue the employer for ordinary negligence. Benefits are also set by statute and are typically more limited than what might be available in a lawsuit, for example there is generally no payment for pain and suffering.

Personal injury claims in brief

A personal injury claim is based on someone else's negligence or wrongdoing. It requires showing fault and can seek a broader range of damages, which may include pain and suffering in addition to economic losses.

When both may apply

Even if you are covered by workers' compensation, someone other than your employer may have contributed to the injury. Examples include:

• A negligent driver who hit you while you were driving for work
• A contractor on a shared work site
• A manufacturer of defective equipment
• A property owner where you were working

In those cases you may be able to receive workers' compensation and also bring a separate third-party claim. If you do, the workers' compensation insurer may have a right to be repaid from part of the recovery.

Practical points

• Report the injury promptly. Workers' compensation has reporting deadlines, sometimes only days or weeks.
• Get medical care and tell the provider that the injury is work related.
• Keep records, including the report you filed and any claim number.
• Be careful about choosing doctors. Some states let the employer or insurer direct your care.
• Know the deadlines. Filing windows differ for each system.

Getting advice

Because the rules and deadlines for each system differ, and because a single accident can involve both, a licensed attorney can help explain which options may apply where you live.

This article is general information, not legal advice. Workers' compensation laws vary significantly by state.