What is third-party liability in workers’ comp?

Third-party liability allows injured workers to pursue claims beyond workers’ compensation against non-employer parties causing injuries. Product manufacturers face liability when defective equipment causes workplace injuries. Property owners where employees work may bear premises liability for unsafe conditions. General contractors on construction sites owe safety duties to subcontractor employees. Other contractors creating worksite hazards face liability for resulting injuries. Motor vehicle drivers causing work-related crashes create third-party claims. Architects and engineers may bear liability for design defects causing injuries. Maintenance companies servicing equipment can face negligence claims for failures. Toxic substance manufacturers bear strict liability for exposure injuries. Third-party administrators mishandling claims may face bad faith liability. Subrogation rights allow workers’ compensation carriers to recover from third parties. Credit for compensation benefits reduces third-party recoveries avoiding double recovery. Employer immunity doesn’t extend to gross negligence or intentional harm. Dual capacity doctrine may allow suits when employers have non-employer relationships. Understanding third-party options ensures full recovery beyond limited compensation benefits.

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