While Johnson & Alday cover both kinds of cases and they are part of the same general family of “liability,” there are key differences between the two. While both liability and worker’s comp cover injury, the differences are stark when it comes to compensation parameters, legal process, and issues of fault. Below, our colleagues at Johnson & Alday, LLC explain key differences between liability cases and worker’s compensation.
Fault Requirements
WIth liability cases, that being anything from a motor vehicle collision to a dog bite, it is required that there is proof of fault. The other party must be at fault in order to proceed with a liability claim of any kind. As for a worker’s compensation claim, the employer does not need to be proven at fault. If you were hurt at work, you are entitled to worker’s compensation: simple as that.
Compensation Scope
Worker’s compensation, like liability, covers your medical expenses as well as part of lost wages you may have due to your time out of work. Liability is more inclusive on that front, as it can cover medical expenses, lost wages, future earning capacity, emotional distress, and pain and suffering. These are less concrete numbers, and there is more room for negotiation and many different aspects to take into account.
Legal Process
While there are usually standard proceedings in cases like these, there is one key difference that lies in the classification. Worker’s compensation cases are typically an administrative process that involves state agencies, whereas liability cases are civil lawsuits tried in front of a jury. Both are heavily involved with insurance agencies and have some similarities, the actual process and eventual trial or hearing can be very different.
Ability to Sue
Typically, you would not sue your employer for a workplace injury, and worker’s compensation is the exclusive remedy. Liability cases, on the other hand, are filed against third parties, such as a negligent driver and their insurance. You may not be directly suing the driver, but their insurance is effected and that is where the settlement comes from when all is said and done.
The Overlap
If a third party (not your employer) causes your work injury (such as a defective machine, a car accident while you are driving for work), you may be able to file a worker’s compensation claim and a liability lawsuit. They are still separate, but they are regarding the same instance and will be processed differently and will be considered completely separate claims.
Overall, a personal injury lawyer knows that a worker’s compensation claim is more of a no-fault system covering work-related injuries with limited specific benefits (usually only including medical expenses and lost wages), whereas liability requires the proof of negligence by a third party to recover broader damages such as pain and suffering in addition to what is covered in a workers compensation claim. In addition, worker’s compensation is usually an exclusive remedy against employers, whereas liability allows for lawsuits against negligent parties.
