Why is workers’ compensation a “no-fault” system?

Workers' compensation was designed to provide wage and medical payments to employees quickly after a work injury, and remove the need to file a lawsuit to recover compensation. In this way, workers' compensation insurance works similarly to other no-fault insurance systems: an employee can file a claim after an injury and receive benefits no matter whose negligence caused the accident.

The Many Benefits of the Workers’ Compensation System

Workers’ compensation is essentially a contract between employers and employees. The employer provides fixed benefit payments after a work injury or occupational illness, and employees relinquish the right to sue the employer in exchange.

Workers’ compensation provides a number of protections to:

  • Injured employees. Since injured workers do not have to prove negligence, injury payments can be distributed more quickly and at a lower cost through workers' compensation than through a lawsuit.
  • Coworkers. Most workers' compensation systems prohibit injured employees from suing coworkers, protecting fellow workers involved in the injury from losing their livelihoods.
  • Employers. The "exclusive remedy" provision limits the amount employees can recover from an employer after a work injury, making it cost-effective to carry workers’ compensation insurance.
  • Workers injured by a third party. While an employee may not be able to sue a coworker or employer, there is no such rule preventing an injury lawsuit against a negligent third party. An employee who was hurt as a result of defective machinery, a faulty product, lax inspections, or inadequate maintenance or repairs can seek compensation from product manufacturers or contractors in addition to filing a workers' compensation claim.

If you are struggling after a work injury, our workers’ compensation attorneys can gather evidence to strengthen your claim and get you the benefits you deserve. Contact Tapella & Eberspacher today at (855) 522-5291 or fill out our online contact form to schedule your free consultation and have our legal team advise you on your next steps at no cost to you.