Workers Compensation vs. Personal Injury Case: Key Differences

The CDC reports that there are an average of 39.5 million personal injury accidents every year that require medical treatment. Among those cases, about 400,000 of them will result in a personal injury lawsuit.

One reason why fewer lawsuits arise due to these accidents is the availability of insurance. From car insurance to workers' compensation insurance, many losses associated with accidents are immediately covered by existing policies.

If you get hurt at work, then your injury is likely covered by a workers’ compensation policy. Depending on your circumstances, you might also want to consider filing a personal injury lawsuit. Your options may be limited if your employer has a policy that covers you, though. The best way to determine your legal options is to speak directly with a personal injury attorney about your specific circumstances. That said, we’ll give you a general overview of what it’s like seeking compensation from workers compensation vs personal injury claims below.

Explanation of Workers’ Compensation

Under the law, employers have a legal duty to care for and protect their employees. If a workplace injury occurs, the employer will be considered responsible for the losses associated with the incident if they were negligent in providing a reasonably safe workplace.

Since accidents are so common, no fault workers compensation insurance provides coverage for employers. When an accident happens, the insurance policy kicks in and provides benefits to the worker. Workers’ compensation coverage should cover your medical expenses associated with the injury, a portion of your lost wages, and any permanent or partial disability benefits when your injury prevents you from returning to work.

The Difference Between Workers’ Comp and Personal Injury

There is a major difference between workers comp and personal injury claims, so it’s important to understand the facts surrounding each before you decide on how to move forward after your injury.

In a workers’ compensation claim, you are receiving benefits from an insurance policy, whereas personal injury cases are legal claims against individuals or companies. You’ll seek compensation from the person or business who caused the accident or unsafe condition.

While both options will help you cover your medical bills, there are specific differences in the compensation you can receive, what you’ll need to prove, and the restriction you may face.

Fault vs. No Fault

One of the main differences between personal injury claims and workers’ compensation is what you’ll need to prove to get compensation. Workers’ compensation is a no fault system, which means you won’t have to worry about proving who caused your accident to successfully get compensated for your losses.

In personal injury claims, negligence must be proven. You will need to show direct evidence that shows the other party was at fault. Once fault is established, you’ll need to further prove the extent of your losses. If you were partially to blame, then your overall compensation award will be reduced, or you may be barred from getting any compensation at all.

Scope of Compensation

Another significant difference is the scope of the compensation you can receive through each method. In both types of claims, you’ll be able to recover the costs associated with your medical expenses and medical bills. In a workers’ compensation claim, you can also recover up to 2/3rds of your lost wages and some disability benefits.

Compensation recovery is much broader in a personal injury claim. In these lawsuits, you can file for all your lost wages, pain and suffering, any property damage you sustained in the accident, and more. Typically, a personal injury lawsuit will help you fully recover from all your accident-related expenses when the other party is completely to blame.

Legal Restrictions

If your employer has taken out a workers compensation policy on you, then you’ll face restrictions when it comes to filing a claim. Typically, you give up your right to pursue a claim when you’re covered by workers’ compensation. This can change, though, if your employer intentionally causes the accident or you’re pursuing a claim against a third party.

Choosing Between Workers Compensation vs. Personal Injury

You’ll want to keep those factors in mind when choosing between a workers’ compensation and personal injury lawsuit. If you were partially to blame, then it might be better to file for workers’ comp. If you have significant losses that won’t be covered under workers’ compensation insurance, then it might be better to consider a lawsuit.

Personal Injury Lawyer: Navigating Workers Comp and Personal Injury

In general, the best way to determine what compensation is available in your situation and your best options is to consult with a personal injury lawyer for workers comp. An attorney will be able to fully inform you about your rights and options so you can make an informed decision on how to handle your losses.

FAQs

Do you have more questions? Get answers to some of the most frequently asked questions about workers’ compensation claims and personal injury lawsuits below.

Do I Need to Prove Fault in a Worker’s Compensation Claim?

One of the main questions workers have after an injury is – is there a fault requirement for seeking out coverage under workers’ compensation? The short answer is ‘no’. You don’t need to prove fault in workers’ compensation claims because it is a no-fault insurance system.

Can I Sue My Employer in a Personal Injury Case if I am Covered by Workers’ Compensation?

Your right to file a personal injury claim against your employer is extremely limited when they take out workers’ compensation insurance. In general, you’ll only be able to sue your employer if they intentionally caused the accident. You might be able to file third-party claims, though, when someone else caused or contributed to the incident.

What Types of Damages Can I Recover in a Personal Injury Lawsuit that are Not Available in a Workers’ Compensation Claim?

In a personal injury lawsuit, you can recover non-economic damages, like pain and suffering. You can also receive compensation for future compensation outside of permanent disability, like a loss of earning capacity.

Speak to an Attorney to Help You Make an Informed Decision on How to Handle Your Injury

Are you currently weighing out your options when it comes to filing for workers compensation vs personal injury compensation? If you’re not sure what your best option is, then it makes the most sense to talk to an attorney who can weigh out your personal circumstances, value of your losses, and best options for recovery.

Here at Kermani LLP, our team has years of experience helping clients like you determine how to best handle their losses. Schedule a meeting with our team now to learn more about how we can help.