Free Consultation | "NST is the Way to Go!"
Updated: June 19, 2025
Published: June 19, 2025

Understanding Workers’ Comp vs. Personal Injury Claims

injured construction worker
Key Takeaways
  • Workers’ comp is no-fault insurance that covers employees with work-related injuries.
  • A personal injury claim is generally against a third party and is fault based.
  • Workers’ comp covers some economic damages, but usually not non-economic damages.
  • In a personal injury claim, you can pursue economic and non-economic damages.
  • In some instances, you can file both a workers’ comp claim and a personal injury lawsuit.

Workplace injuries can involve physical or mental harm sustained while performing job duties. These injuries may result from a single accident or develop over time due to repetitive stress or exposure.

Injured workers may be entitled to compensation, but it’s important to understand the difference between a workers’ compensation claim and a personal injury lawsuit. Workers’ compensation is insurance that most employers are required to carry, providing no-fault benefits for job-related injuries. In contrast, personal injury claims are civil lawsuits that require proof of fault and are handled through the court system. In some cases, you may be eligible to pursue both types of claims if a third party contributed to your workplace injury.

What Is Workers' Compensation?

Workers’ compensation is a system that provides benefits for job-related injuries regardless of who was at fault. It began as a “grand bargain” between injured workers and employers. Rather than determining whose negligence caused an injury, employers buy insurance and, in turn, workers generally give up their right to sue their employers for work-related injuries. 

In most cases, workers’ compensation is the exclusive remedy for work-related injuries, meaning employees cannot sue their employers for negligence. However, exceptions may apply in rare cases involving gross misconduct or lack of required coverage. In a workers’ comp claim, beneficiaries can usually only receive compensation for their economic losses, such as medical bills, lost wages, and death benefits. 

What Is a Personal Injury Claim?

Personal injuries harm someone’s physical or emotional health as opposed to damage to their property. To prevail in a personal injury claim, you must prove that the other party was at fault. You generally do this by proving that their reckless or negligent behavior was the cause of your injury.

Some personal injury cases are based on strict or vicarious liability, in which the defendant can be held responsible without proof of negligence. For example, you may be able to sue a manufacturer of defective scaffolding if it caused your injuries.

You can pursue economic damages in a personal injury lawsuit, as well as non-economic damages such as pain and suffering. For a work-related injury, you generally file personal injury lawsuits against third parties, such as equipment manufacturers, the property owner, or a subcontractor. 

Key Differences at a Glance

The differences between workers’ comp and personal injury lawsuits start with the foundation of your claim and who you seek compensation from. These initial differences include:

  • Basis of the claim
    • Workers’ comp: An injury occurred in the course and scope of employment, and you can receive benefits regardless of fault.
    • Personal injury: The negligence or wrongful act of another party caused the injury, and you must prove fault.
  • Who You Claim Against
    • Workers’ comp: Your employer’s workers’ compensation insurance.
    • Personal injury: The negligent party, be it an individual, corporation, or insurer.

The type of claim you are eligible to file determines the benefits or damages you may receive.

Types of Damages and Benefits

Workers’ compensation claims are generally more restrictive than personal injury claims regarding the types of compensation you can seek. The damages you can pursue in each type of claim include:

  • Workers’ comp
    • Full medical expenses 
    • Partial lost wages, typically at a rate such as two-thirds of the worker’s average weekly wage
    • Permanent disability benefits
    • Vocational rehabilitation
    • Death benefits
    • Generally, workers’ comp does not cover pain and suffering
  • Personal injury
    • Full past and future medical expenses
    • Full past and future lost wages
    • Loss of earning capacity
    • Pain and suffering
    • Emotional distress
    • Loss of consortium
    • Property damage
    • Punitive damages, in rare cases, and based on state laws regarding the burden of proof and damages caps

Process and Timeline

Workers’ compensation is an administrative process with multiple deadlines. For example, in Tennessee, you must notify your employer within 15 days that you have a work-related injury or illness. If you disagree with the workers’ comp insurance decision in your case, you have one year to file a petition with the Tennessee Bureau of Workers’ Compensation.

Personal injury claims are civil cases. Because you must prove fault, they involve investigations, negotiations, potentially a lawsuit, discovery, and settlement or trial. You must file a claim within your state’s personal injury statute of limitations. For example, in Tennessee, you usually have one year from the incident date to file a lawsuit.

Right To Sue

When you get hurt at work, you generally give up the right to sue your employer and instead turn to workers’ comp as your exclusive remedy. In a personal injury claim, the basis of your case is the right to sue the at-fault party for damages for your work-related accident. This is usually a third party, not your employer.

Can You File Both a Personal Injury Claim and Workers' Comp?

In some situations, you may be able to file a personal injury lawsuit even if you’re receiving workers’ compensation. For example, if you’re injured on the job after being struck by a subcontractor’s vehicle, you can file a workers’ compensation claim for the work-related injury. At the same time, you may also pursue a personal injury claim against the subcontractor as a third party responsible for the accident.

It’s important to note that the workers’ compensation insurer generally has subrogation rights if you win damages in a personal injury claim. It can seek recovery of benefits it paid you through the proceeds of your personal injury settlement or verdict.

An experienced workers’ compensation attorney can assist you in choosing a workplace injury lawsuit vs. workers’ comp or filing both. They can also help you negotiate a split if the workers’ comp insurer seeks to recover what they paid you from the lawsuit settlement proceeds.

Contact a Personal Injury Lawyer Today for a Free Case Evaluation

At NST Law, we have a successful history of securing workers’ compensation settlements, including more than $900,200 from a workers’ comp insurer that offered our client $18,000. We’ve also won billions in personal injury settlements and verdicts, including $950,000 for a worker who received workers’ comp and won a personal injury award because an improperly welded catwalk caused his injuries. 

We are passionate about our clients and the communities we serve. Injured and unsure which type of claim applies to you? Contact us today for a free consultation by calling 800-529-4004 or completing our contact form.

Free Consultation

"*" indicates required fields

SMS
This field is for validation purposes and should be left unchanged.
parker trotz
Content Legally Reviewed by:
Attorney A. Parker Trotz

Mr. Trotz was recognized from 2019-2024 as a Super Lawyers Mid-South Rising Star. Mr. Trotz is also a member of the Young Lawyers Division of the Memphis Bar Association, Memphis Bar Association, Tennessee Bar Association, and the Tennessee Trial Lawyers Association where he serves on the Executive Committee.