A lien is a legal right that one party has against the property of another. In California, if you seek worker’s compensation benefits for your construction accident injury and also file a lawsuit for third-party liability seeking compensation for medical expenses or wage loss, the worker’s compensation insurer can place a lien against the lawsuit to recoup a portion of the benefits the insurer paid to you. Insurers are legally only allowed to recover up to two-thirds of the benefits they paid to you, as the law requires them to also share in the cost of the recovery.