What does an Action Over Claim refer to in Workers' Compensation?

An Action Over Claim in the context of Workers' Compensation refers specifically to a subrogation action for damages. This occurs when an employee who has suffered an injury at work seeks compensation under the Workers' Compensation system, but there may be a third party, such as an equipment manufacturer or another contractor, potentially liable for the injury.

In such cases, the Workers' Compensation insurance provider may pursue an Action Over Claim against the third party to recover the costs it incurred due to the worker's injury. This subrogation process is crucial because it allows the insurance company to recoup its payments by holding the responsible party accountable. It emphasizes the interconnectedness of Workers' Compensation benefits and third-party liability claims, illustrating how injured workers or their insurers can seek additional relief beyond what is provided by Workers' Compensation alone.

Understanding this process is essential for an adjuster because it involves navigating both the Workers' Compensation system and the considerations of personal injury law, ensuring that claims are handled effectively and that all potential sources of compensation are pursued.