In Illinois, if you or a loved one has been hurt at work due to another party’s negligence, you have two types of compensation you may be able to pursue: workers’ compensation and personal injury compensation. At the intersection of these is the legal concept of subrogation.
Workers’ compensation and personal injury are the two main areas of law we focus on at Marker Law, LLC, so we are well-positioned to guide you through the process. We shoulder all the work involved in coordinating subrogation, workers’ compensation, and personal injury damages so you can focus on healing. Read on to learn more about the role of subrogation in workers’ compensation and personal injury claims in Illinois and how Marker Law can help you make sense of your options after a work injury.
Contact us today at 331-295-8005 to discuss your case and learn how we can help you.
Key Takeaways
- Subrogation allows a workers’ comp insurer to be reimbursed from an at-fault third party or from a worker’s personal injury settlement for expenses already paid.
- If a third party caused the injury, the workers’ comp insurer can file a lien against the worker’s personal injury claim to recover medical and wage-loss payments.
- Workers cannot be paid twice for the same expenses, so part of a personal injury settlement may be used to repay the workers’ comp insurer.
- If the employee does not file their own lawsuit within twenty-one months, the workers’ comp insurer can file a claim against the at-fault party on its own behalf.
- A real-world example shows how subrogation plays out, including filing a lien and repaying the insurer once a personal injury settlement is reached.
- An attorney can negotiate lien reductions and help ensure the settlement is fairly allocated so the injured worker receives the maximum possible recovery.
- Workers are usually required to cooperate with subrogation efforts, and legal guidance helps protect benefits while securing full compensation from all responsible parties.
What Does Subrogation Mean in Workers’ Compensation?
Subrogation is a legal concept that allows a party that covered your expenses (like an insurance company) to be reimbursed by an at-fault party or to collect a portion of your personal injury settlement.
If your employer’s workers’ compensation insurer pays for your medical care or lost wages after a work accident, the insurer may have a right to subrogation. If you file a lawsuit against the at-fault party, the insurer may file a lien on your claim to recover a portion of your settlement money as reimbursement for what they already paid. If you do not file a lawsuit, they can pursue their own claim for reimbursement against the at-fault party.
Subrogation works to prevent workers from being paid twice for the same expenses. Practically, it means that part of your personal injury award may go back to the workers’ comp insurer or employer to cover what they already paid.
Workers’ Compensation Subrogation Example
Here’s a scenario illustrating the step-by-step process of workers’ compensation subrogation.
- An injury happens. Sue works for Builders Inc., a general contractor on a construction site. One of Builders Inc.’s subcontractors, Plumbers LLC, fails to clean up the debris they left behind on the job site, and Sue trips over the debris while at work and suffers injuries.
- Employee receives workers’ compensation benefits. Sue files a workers’ compensation claim through the insurance of her employer, Builders Inc., and recovers the cost of her medical bills and some lost wages.
- Employee sues third party. Sue then files a personal injury lawsuit against Plumbers LLC, seeking damages for the financial and emotional costs of her injury.
- Employer/insurer files subrogation claim. Builders Inc. or its workers’ compensation insurer files a lien against Sue’s personal injury award.
- Lawsuit settlement and subrogation distribution. Sue reaches a settlement with Plumbers LLC that pays for her medical expenses, lost wages, and pain and suffering. Sue satisfies the lien by reimbursing Builders Inc. or its insurer for the amount it paid for her medical bills and lost wages out of her settlement award.
If Sue chose not to file a personal injury lawsuit, Builders Inc. or its insurer would have the right to sue Plumbers LLC itself to get reimbursed for the medical bills and lost wages it paid to Sue.
Deadline for Subrogation in Workers’ Compensation and Personal Injury Cases
Under Illinois workers’ compensation law, if you don’t file a personal injury lawsuit against the at-fault party of your work-related injury within twenty-one months (three months before the state’s statute of limitations for personal injury claims), your employer’s workers’ compensation insurance company can step in and file one for themselves. This could result in you not getting the full amount of compensation you deserve.
How an Attorney Can Help with Subrogation Issues
An experienced workers’ compensation attorney can represent your interests against the employer or workers’ comp insurer that is seeking subrogation. Your attorney may be able to help you negotiate a reduction in the workers’ comp lien and can help your settlement be allocated fairly between you and the employer or insurer so you receive the maximum recovery allowed under the law.
Frequently Asked Questions
How Does Subrogation Work in a Workers’ Comp Claim?
When a worker is injured on the job, workers’ compensation benefits cover medical care and wage loss. If another party besides the employer contributed to the injury, such as a negligent driver or equipment manufacturer, the workers’ compensation insurance company may seek reimbursement from that third party through a process called subrogation. This allows the employer or its insurer to recover the money it paid while still providing the injured worker with the benefits they need in the short term.
Why Does Subrogation Matter in Workers’ Compensation Cases?
Subrogation impacts how much compensation ultimately reaches the injured worker. When money is recovered from a third party, the insurer may be reimbursed first, but the worker can also pursue additional damages beyond what workers’ compensation covers, such as pain and suffering. Properly handling subrogation prevents the injured worker from losing their right to the full recovery they deserve. It also prevents the worker from being caught between the competing interests of employers, insurers, and third parties.
Are Workers Required to Cooperate with Subrogation Claims?
Workers are generally required to cooperate with subrogation efforts, which can mean providing information or allowing the employer or insurer to take action against the third party. Failing to cooperate could risk benefits. Having an attorney guide the process helps safeguard the worker’s rights, meet all legal obligations, and maximize opportunities for full compensation.
Contact Us Today
The last thing you need when you are trying to heal from a workplace injury is the stress of taking on the subrogation, workers’ compensation, and personal injury process alone. We are here to help. At Marker Law, LLC, we have 25 years of experience in the field. We have been recognized by Super Lawyers for over a decade and nominated for “Best of Naperville” in 2024. We have a strong reputation with Naperville-area judges, attorneys, and medical providers that we will leverage for you.
You deserve to get the full compensation you are owed, not just whatever the insurers decide is convenient. Contact us today for your free case review.