Workers’ comp carriers have the right to place a lien on third-party claims related to a workplace injury they provided coverage for. In most instances, if you’ve agreed to a workers’ comp settlement, then your carrier will have to consent to any legal action or settlement agreement involving a third party.
Your workers’ comp carrier is only eligible to recover amounts in excess of $50,000 which are directly related to coverage areas they already provided. Based on these limitations, workers’ comp cannot put a lien on attorneys’ fees, pain and suffering payments, and novel damages not presented in the original workers’ comp claim.
The risk of a subrogation action taking a large portion of your third-party case’s damages is very real, so working with an experienced New York injury law firm is essential. They can help you strategize your case and communicate with your workers’ compensation carrier to ensure your third-party lawsuit or insurance claim provides recovery of damages.