How Might a Waiver of Subrogation Affect my SC Workers’ Comp Claim?
Learn how a waiver of subrogation can impact workers’ comp benefits after an injury so you can maximize your compensation in Columbia
Waivers of subrogation are included in many South Carolina work contracts to limit the legal actions one party can take against another in the event of an injury or loss. While these clauses may seem like they primarily benefit employers and insurance companies, they can actually work in favor of injured workers by allowing them to keep more of their compensation after a workplace injury.
In this article, we’ll discuss how waivers of subrogation function, who they’re intended to protect, and their potential benefits for workers. If you’re a Columbia worker, understanding this clause could be key to maximizing your financial recovery after an on-the-job accident.
What is a waiver of subrogation?
A waiver of subrogation is a clause in a contract that prevents an insurance company from suing a third party (like a building owner or business) to recover the costs of a claim they’ve paid out.
In workers’ compensation cases, this means if an injured worker receives workers’ comp benefits for a workplace injury, the employer’s insurance provider cannot later pursue reimbursement from a third party who may have contributed to the injury.
Typically, subrogation allows the insurance company to seek compensation from any third party responsible for the injury, which could reduce the worker’s total financial recovery. However, with a waiver of subrogation in place, the insurance company gives up that right, potentially allowing the injured worker to keep a larger share of any compensation they receive from a third-party lawsuit.
Why would someone want a waiver of subrogation?
Businesses often put waivers of subrogation in contracts to protect themselves from being held liable for reimbursement by an insurance company in the event of a claim, even if the business is partially responsible. This reduces the risk of costly lawsuits and legal disputes, allowing the business to avoid potential financial setbacks after a worker’s injury.
Who does a waiver of subrogation protect?
A waiver of subrogation is often thought to primarily protect businesses, but it can actually benefit multiple parties in a contract in different ways. Here’s how:
- Third parties. The waiver prevents the insurance company from suing third parties (such as property owners or contractors) to recover costs paid out for an injury or loss. This protects third parties from legal actions initiated by the injured party’s insurer, preserving business relationships and preventing legal disputes.
- Employers. By including a waiver of subrogation in contracts, employers can prevent their insurance provider from suing other contractors or property owners they’re working with, which helps maintain positive working relationships and avoids conflicts.
- Injured workers. In some cases, a waiver of subrogation can benefit workers by allowing them to keep the full compensation from a third-party lawsuit without the insurance company claiming a share. This can be particularly advantageous if the worker files a lawsuit against a negligent third party after receiving workers’ compensation benefits.
Overall, the waiver of subrogation protects third parties, maintains cooperation between employers and contractors, and can benefit injured workers by maximizing their compensation after an injury.
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What is the effect of a waiver of subrogation on injured workers?
Here’s an example of how a waiver of subrogation might impact a worker after an on-the-job injury:
Imagine you’re a construction worker employed by a company in South Carolina who’s been hired to work on a building owned by a third-party company. During the job, you suffer a spinal cord injury due to unsafe structural issues with the building that were the responsibility of the building owner. After your injury, you file a workers’ compensation claim with your employer’s insurance company and receive workers’ comp benefits for your medical bills and lost wages.
Normally, your employer’s insurance company would have the right to pursue legal action against the negligent building owner to recover some of the costs they paid out to you. However, if a waiver of subrogation is in place, the insurance company waives its right to do so.
This means if you decide to sue the building owner for additional compensation for damages like pain and suffering or emotional distress that aren’t included under workers’ comp, you can keep any settlement you receive from the lawsuit without your employer’s workers’ comp insurer claiming a portion of it.
In this way, waivers of subrogation can work in your (the injured worker’s) favor by allowing you to maximize your financial recovery without having to share it with your employer’s insurance company.
Looking for the best Columbia work injury attorney to help with your workers’ comp claim?
If you’ve been injured on the job and are unsure how a waiver of subrogation might impact your compensation, or if you need assistance filing a claim, the experienced Columbia workers’ compensation attorneys at Smith, Born, Leventis, Taylor & Vega are here to help.
Specializing in both workers’ compensation and personal injury claims, our team can remove the confusion and guesswork, guiding you through the process to ensure you receive the full compensation you deserve.
Whether you’re dealing with your employer’s workers’ comp insurer, a third-party lawsuit, or both, our knowledgeable work injury attorneys can ensure that your rights are protected and your financial recovery is maximized.
