What Is Workers’ Compensation Subrogation?
If you have been injured on the job, you may have heard the term “workers’ compensation subrogation.” While it sounds complicated, it is an important concept to understand if you want to ensure that you receive the compensation you deserve.
Our workers’ compensation attorneys at Berman | Sobin | Gross LLP can help you navigate the workers’ comp claims process and protect your rights when dealing with potential subrogation claims.
What Is Subrogation in Workers’ Compensation Cases?
In simple terms, subrogation in workers’ compensation refers to the right of an insurance company or employer to recover the costs of an employee’s injury from a third party who may have caused the injury. Essentially, it means that the insurance company or employer has the right to “step into the shoes” of the injured employee and take legal action against the responsible party.
Examples of Subrogation
Let’s say that you are a delivery driver and you are hit by a car while making a delivery. You are injured and your employer’s workers’ compensation insurance pays for your medical expenses and lost wages. The insurance company can then file a subrogation claim against the driver who caused the accident to recover the costs of your medical bills and lost wages.
Another example of subrogation could be if you are working on a construction site and you are injured by a defective power tool. Your employer’s workers’ compensation insurance pays for your medical expenses and lost wages, but the insurance company can then file a subrogation claim against the manufacturer of the tool to recover the costs of your medical bills and lost wages.
Third-Party Liability in Workers’ Compensation Cases
Third-party liability refers to situations where someone other than your employer or a colleague is responsible for your injury. This could include the examples we mentioned earlier, such as a car accident or defective equipment.
In these cases, if you receive workers’ compensation benefits, the insurance company or employer may have a right to subrogation to recover the costs of the benefits they paid to you. In addition to a subrogation claim, you may also have the option to file a personal injury lawsuit against the responsible party.
Fact: In 2021, there were more than 1 million non-fatal injuries and illnesses that caused a worker in the private sector to miss at least one day of work, according to a report by the Bureau of Labor Statistics.
A Waiver of Subrogation for Workers’ Compensation
A waiver of subrogation is a legal document that can be signed by an employer, a contractor, or even a property owner, releasing any potential claim for reimbursement or compensation coming from the workers’ compensation insurance provider regarding the work their subcontractor does. This release means that the party signing the waiver cannot later sue for reimbursement of compensation or claim from their provider.
Get Help from an Attorney
Understanding workers’ compensation subrogation is crucial if you are injured on the job. By knowing your rights and the responsibilities of your employer and the insurance company, you can protect your rights and ensure that you are fairly compensated for your work-related injury or illness. If you have any questions about subrogation in your workers’ compensation case, contact Berman | Sobin | Gross LLP to get help. Set up a free case evaluation by calling 800-248-3352.