How Do Injured Workers File Lawsuits in Texas?

Employers in Texas are not required to carry workers’ compensation. Some may use occupational accident insurance and others may not carry any type of coverage. For employers that use workers’ compensation, there are some important nuances to understand before discussing third party lawsuits in Texas.In the event you suffer an on-the-job injury and your employer uses workers’ compensation, you will most likely be unable to file a lawsuit. Injured employees use workers’ compensation to pay for medical bills and lost income. Workers’ compensation benefits do not allow for a pain and suffering damages.There are still scenarios where injured workers can file lawsuits, even if their employers are using workers’ compensation. These are called third party lawsuits. As the name implies, third parties may be responsible for on-the-job injuries. This can include the manufacturers of equipment used on job sites, contractors, subcontractors and other motorists. Third party lawsuits allow for pain and suffering damages, and can result in much larger awards.

An Example of an On-the-Job Injury Caused by a Third Party

James works for a Lufkin construction company that has been contracted to help build a new community center. Another company has been hired by James’ employer to install electrical wiring for the construction project (making this second company a subcontractor). One day on the job site, James walks in front of a loose wire that has been left out in the open. Thousands of volts surge through James’ body and he is badly burned.An air ambulance arrives and James is flown to the nearest hospital with a burn unit. When he wakes from his medically induced coma, doctors tell James that he has suffered third-degree burns over 30 percent of his body, and that the fingers on his left hand had to be amputated. An investigation reveals the subcontractor hired to do the wiring is responsible for the accident.

What Can Happen After Filing a Third Party Lawsuit?

James is not employed by the electrical subcontractor in our story, making it a third party. This third party’s negligence caused James’ injuries, and he may have a claim. If James files a lawsuit against the electrical company, he should still use workers’ compensation benefits. Workers’ compensation will help pay his medical bills and lost wages while the lawsuit against the subcontractor is underway.If James is successful in securing a judgment or reaching a settlement with the subcontractor, he would be required to pay back the insurance provider that provided him workers’ compensation benefits out of a portion of his award. This is a process known as subrogation. Depending on the size of the judgment or settlement agreement, the amount subrogated can be small in comparison.Workers harmed by the negligent actions of others should know what options are available to help aid in the recovery process. The Texas personal injury attorneys at Mike Love & Associates, LLC, can help injured workers and their families explore available options.

Has Your Employer Opted Out of Texas Workers’ Compensation?

Texas workers should know whether their employers are using workers’ compensation, occupational accident insurance, or nothing, as the differences can have significant impact on how you recover from workplace injuries and illnesses.Texas allows some private employers to ‘opt out’ of using workers’ compensation, which is used almost universally in other states. Some employers, especially those using independent contractors, prefer to use occupational accident insurance.Workers’ compensation is a state-regulated insurance program that pays medical bills, death benefits, funeral expenses and some lost wages for injured employees. In addition, workers’ compensation protects employers from injury lawsuits in many cases. Instead of settlements or judgments from personal injury cases, employees receive benefits from workers’ compensation. So let’s say Joe, a construction worker, is injured in a slip and fall accident on a job site. No third party was involved. This means Joe would likely be unable to sue his employer for damages. Instead, Joe would file a workers’ comp claim and possibly receive benefits to cover the cost of care and lost wages while he recovers.Occupational accident insurance is different, in that it is not state-regulated and only provides whatever benefits are covered by the policy. These policies cost less for the employers, but they do not provide the same level of coverage. However, it is easier to file lawsuits against negligent employers who are using occupational accident insurance instead of workers’ compensation. Because they do not have workers comp, the law penalizes them by limiting the defenses they can raise against the injured employee.Let’s say hypothetically, Joe’s employer used occupational accident insurance instead of workers’ comp. However, Joe’s employer was still negligent, and that means he could hire an attorney and possibly sue for damages. The same could be true if Joe’s employer had no insurance coverage.

Why You Should Know Your Employer’s Insurance Policy

If you have been injured in a work accident, it is crucial that you discover what type of insurance your employer carries. The type of insurance carried by your employers decides what types of benefits you get (if any at all). Keep in mind, Texas is an opt out state, and private employers are not required to carry any kind of insurance. If your employer has opted out of Texas workers’ compensation, it is crucial to know what, if any, coverage they are carrying.There are some cases where employees will be left without the funds they need to recover. At this point, calling an attorney is crucial. An attorney can discover what your employer carries and can help you decide on the best way to move forward.