Third-Party Liability in Work Injury Lawsuits

A third-party liability claim may arise after a workplace injury that was caused by someone other than the employer or a coworker. Why does it make sense to pursue this type of claim when workers’ compensation benefits are available? Workers’ comp covers medical expenses and part of lost wages without requiring proof of employer fault, but these benefits usually don’t account for damages like pain and suffering or emotional distress. When a party outside the employer–employee relationship contributes to an injury, a legal claim seeking broader compensation usually can be filed against that third party.

Typical Situations Involving Third-Party Liability

Work-related motor vehicle accidents frequently give rise to third-party claims if another motorist is at fault. An employee making deliveries who is hit by a negligent driver may seek workers’ compensation benefits from their own employer and file a legal action against the at-fault driver or that driver’s employer. Defective or improperly maintained equipment can also create third-party liability. If a product such as a chair, ladder, or power tool has a design or manufacturing defect that leads to injuries, the manufacturer may be liable.

Third-party liability sometimes involves someone else’s property. If an employee slips and falls on a freshly mopped floor in a client’s building where warning signs were not placed, the employee may have a viable claim against the property owner or a janitorial service responsible for the unsafe condition.

Proving Negligence or Strict Liability

Many third-party claims require proof that the other party’s negligence caused the injury. To establish negligence, it is generally necessary to show that the other party owed a duty of care, failed to meet that duty, and directly caused the harm. Evidence such as medical bills, wage records, and expert testimony can address the nature and scope of those losses. In product defect cases, strict liability may apply. Under that theory, a manufacturer can be responsible for injuries caused by a flawed product even without a showing of carelessness in its design or production. An injured worker typically demonstrates that a dangerous defect existed and that the defect was the direct cause of the injury.

Understanding Subrogation

When an employee pursues a third-party claim, the workers’ compensation insurance company may seek reimbursement through subrogation. This means that if the employee recovers money from the negligent party, the insurer may have a right to recoup some or all of the benefits it has already paid. State laws vary in how subrogation works, but the concept generally ensures that the same costs are not paid twice. If a third-party claim leads to a settlement or court award beyond what workers’ compensation covered, the insurance company will typically recover its portion of expenses, and the employee may retain any amounts that exceed those expenses.

Last reviewed April 2025