You were injured on the job and now everyone is bombarding you with legal jargon.
Workers’ comp claim. Personal injury lawsuit. Third-party claim. Sounds like the same thing to you? Think again… They’re NOT the same thing. And choosing incorrectly could cost you big bucks.
The good news is that this is really quite simple when explained right. Armed with a rudimentary knowledge of both sides you can:
- Know exactly which claim fits your situation
- Understand what money you can recover
- Avoid the mistakes that wreck good cases
And then leverage that to demand every penny you are worth. Here’s how it all works…
What you’ll pick up:
- What Is a Workers’ Comp Claim?
- What Is a Personal Injury Lawsuit?
- The Big Differences You Need To Know
- Where a Workplace PTSD Claim Fits In
What Is a Workers’ Comp Claim?
Workers comp claim is a type of insurance that provides benefits to injured employees no matter who was at fault.
Think about the term “no-fault”. Literally it means you don’t have to prove somebody did something wrong. You were hurt doing your job. Period. You are covered. That’s it.
Workers’ comp usually covers two main things:
- Medical bills related to your work injury
- Wage replacement which is normally about two-thirds of your average weekly wage
Pretty sweet huh? The downside is that you can’t usually sue your employer. For those assurances, employees trade their right to take their employer to court. It’s one of those areas where it’s worth choosing to use a Minneapolis worker’s compensation attorney to ensure your workplace PTSD claim or physical injury claim is processed correctly from day one. A competent attorney knows the time limits, the forms, and the games insurance companies play.
The biggest advantage workers’ comp has is time. You receive benefits much faster than waiting years for a lawsuit to conclude.
What Is a Personal Injury Lawsuit?
A personal injury lawsuit is different. Here you DO have to prove fault.
Essentially, someone else was negligent, you were injured as a result, and you can prove it. In the workplace setting these are commonly referred to as “third-party claims.” “Third party” just means you are suing someone other than your employer.
Think about it like this…
Say a delivery driver runs a red light and hits you while you’re on the job. The driver is considered the third party. If a piece of equipment breaks due to improper construction, the manufacturer could be the third party. You would sue them directly.
Why go through all of this when you can just file for workers comp? Because the payouts can be significantly higher.
What a personal injury lawsuit can recover that workers’ comp won’t:
- Pain and suffering
- Emotional distress
- Full lost wages (not just two-thirds)
- Sometimes even punitive damages
Disclaimer: Many times you can file BOTH a workers’ comp claim and a third party personal injury claim for the same accident. Many injured workers are not aware of this possibility. Filing both is often the course of action that will allow you to recover the greatest amount of compensation.
The Big Differences You Need To Know
Here’s the breakdown, nice and simple so it sticks.
The most significant distinction between the two options concerns fault. Workers comp requires no proof of fault. To file a third-party lawsuit, you need to show the other party was negligent.
Here’s the second huge difference: the money. Workers’ comp benefits max out based on state law and how much you earn per week. A third-party lawsuit is only limited by how much money the person who hurt you has to pay. That difference can be huge.
There’s also timing to consider. Workers’ comp happens quickly and with near certainty. Personal injury lawsuits take months, if not years, of gathering evidence, negotiating, and possibly going to trial.
One additional thing… If you win a third-party claim, your workers comp insurance carrier can file a “lien” against that recovery. This is known as subrogation. Basically, they want some of their money back that they paid you. An experienced lawyer can usually negotiate that lien amount down.
So which one is right for you?
It depends on the circumstances of the accident and who is at fault. If it was simply an accident that occurred during the course of your normal job duties and no one is at fault, then you’ll want to file workers’ comp. If someone who is not your employer is at fault, you may be able to sue as well as file workers’ comp.
Where a Workplace PTSD Claim Fits In
Now here’s where things get interesting for a workplace PTSD claim.
PTSD is not a broken arm. You can’t take an x-ray or MRI of someone with PTSD. That’s why these claims are subjective and insurance companies know it. They will likely battle any PTSD diagnosis as being “subjective”.
However, PTSD is very real, and also very common. In fact, per U.S. Department of Veterans Affairs data, about 6 out of every Americans will suffer from PTSD in their lifetime.
A workplace PTSD claim can show up in a few ways:
- A first responder dealing with a horrific accident scene
- A cashier held up at gunpoint during a robbery
- A worker who watched a co-worker get seriously hurt or killed
In Minnesota, PTSD is actually included verbatim in the workers’ compensation statute. If you are diagnosed by a licensed physician or psychologist and meet the criteria established by the statute, your claim is covered. For first responders injured on or after January 1, 2019, there is a presumption that your PTSD is work related.
But be careful here…
Documentation is king with these types of claims. Research has shown that 78.8% of PTSD claims denied were due to paperwork issues such as missing forms or insufficient medical documentation. That’s a terrifying statistic and it’s precisely why so many people lose claims they deserve to win.
The most important thing is seeing the same counselor regularly and maintaining good records. You may also have a separate personal injury claim against a third party who caused the trauma in addition to your workers comp claim.
Wrapping This All Up
Understanding the difference between a workers’ comp claim and a personal injury lawsuit is one of the best decisions you can make after suffering an injury on the job. You could save yourself
- Money — you’ll know which path pays the most
- Time — you won’t waste months chasing the wrong claim
- Stress — you’ll understand exactly what’s happening
Providing you with an honest evaluation of your options that is designed to protect your rights. Okay, now that you’re all caught up…
- Workers’ comp is no-fault and fast, but the money is capped
- Personal injury lawsuits need proof of fault, but pay much more
- You can sometimes file both at the same time
- A workplace PTSD claim is covered in Minnesota, but documentation is everything
Fact is these cases are no walk in the park. Mental health just takes even more diligence. Physical or work related PTSD claim but done correctly is what separates the winners from those who leave empty handed.
Get informed today. The sooner you choose wisely, the sooner you can start to heal.
