Workers’ Compensation vs. Civil Lawsuits: Why the Difference Matters to Injured Colorado Workers

Workplace accidents are a common occurrence in just about every industry in Colorado. Of course, some professions are inherently riskier than others. For example, if you work in the oil industry, you may be seriously injured due to an equipment malfunction, motor vehicle accident, or just unsafe working conditions.

When it comes to seeking compensation following such a workplace accident, a worker’s options often include both workers’ compensation and a civil personal injury lawsuit. It is critical to understand that these are distinct types of legal proceedings. Indeed, some accidents may be covered by one but not the other. With that in mind, here is a brief explanation of the differences between workers’ compensation and civil lawsuits in Colorado.

Workers’ Compensation: No-Fault Benefits at a Cost

Workers’ compensation is a type of insurance that most Colorado employers are required to carry. This insurance provides medical and wage replacement benefits for workers injured in an on-the-job accident or unable to work due to an occupational illness. Workers’ compensation is often described as “no-fault” compensation, since the employer and its insurance carrier must pay benefits to the worker regardless of who was at fault for the accident.

That said, workers’ compensation does come at a cost. In general, so long as an employer complies with the requirements of Colorado workers’ compensation law, the injured worker cannot file a separate civil lawsuit against that employer. This is important because workers’ compensation does not provide the same level of compensation as a successful personal injury claim.

For instance, workers’ compensation generally does not compensate a worker for their non-economic damages, such as their pain and suffering. And even compensation for economic damages is restricted. Notably, wage replacement benefits under workers’ compensation only cover a portion of a worker’s lost income.

Civil Lawsuits: When Third Parties Are At-Fault

Workers’ compensation may insulate employers from civil personal injury lawsuits. But it does not apply to third parties whose negligence caused or contributed to an employee’s accident. Let’s say a Colorado oilfield worker is seriously injured due to a defective piece of equipment. Workers’ compensation obviously covers the employee to the extent required by law. But the employee could also pursue a separate third-party civil lawsuit against the manufacturer of the defective equipment.

A personal injury lawsuit allows an injured employee to recover the full measure of their damages without regard to the restrictions imposed by workers’ compensation. (An employer may, however, seek to recover any workers’ compensation benefits paid from an employee’s personal injury award.) The trade-off is that the employee has to prove the third party’s negligence. Unlike workers’ compensation, personal injury is a fault-based system.

Contact a Grand Junction Oilfield Accidents Lawyer

Workers’ compensation and personal injury claims follow different procedural rules that must be strictly followed. A qualified Grand Junction oilfield accident attorney can advise you on this and other subjects related to your right to seek compensation for your losses. Call Killian, Davis & Richter, PC, today at 970-241-0707. We serve clients in Grand Junction, Montrose and Mesa County, Colorado.