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Filing a Third-Party Claim in a Workers’ Compensation CasePosted on May 24, 2026inWorkers' CompensationColoradoworkers' compensationpays for medical treatment and part of your lost wages after a job injury, but it does not cover everything. If someone other than your employer caused or contributed to your injury in 2026, you may be able to file a third-party claim alongside your workers' comp case to recover additional damages. A Fort Collins workers' compensationattorneyat Hoggatt Law Office, P.C. can help you understand whether you have that option and what it could mean for your recovery.What Does Workers' Compensation Cover in Colorado?Colorado's workers' compensation system pays for medical treatment and a portion of lost wages when you are hurt on the job. The tradeoff is that workers' comp is the exclusive remedy against your employer. That means you generally cannot sue your employer directly, even if their negligence played a role in your injury.TheBureau of Labor Statisticsreported 2.5 million nonfatal workplace injuries and illnesses in private industry in 2024. The vast majority of those workers were limited to workers' comp benefits. But workers' comp does not cover pain and suffering or the full value of your lost wages. That gap can be significant when a serious injury keeps you out of work for months or longer.What Is a Third-Party Claim After a Colorado Work Injury?A third-party claim is a personal injury lawsuit filed against someone other than your employer or a co-worker. You have to prove the other party's negligence caused your injury. In return, you can recover damages that workers' comp never pays – including pain and suffering, emotional distress, and full lost wages.A sample of third-party claims in workplace injury cases might include:A delivery driver injured by a negligent motorist while on the clockA construction worker hurt by defective equipment made by an outside companyA retail employee hurt by a third-party delivery contractorA worker injured on a property owned or managed by a third party who failed to keep it safeAny of these situations may give you grounds to file a separate claim for full compensation.Can You File Both a Workers' Comp Claim and a Third-Party Lawsuit in Colorado?Pursuing both a third-party and a workers’ compensation claim at the same time is allowed under Colorado law. There is one key rule to understand before you settle anything, however. UnderC.R.S. § 8-41-203, Colorado's workers' compensation subrogation statute, the insurance carrier that paid your workers' comp benefits has a legal right to recover some of what it paid from your third-party settlement. This is called subrogation.Subrogation in Workers’ Comp ClaimsHere is what subrogation looks like in practice. Say your employer's insurer paid $40,000 in medical bills and lost wages. You later settle a third-party claim for $100,000. The insurer can seek up to $40,000 back from that settlement. The carrier cannot take more than what it actually paid in benefits; it can only get up to its lien amount. The insurer also has the right to step in and pursue the third-party claim directly if you choose not to. They have 90 days after receiving notice of your lawsuit to decide whether to intervene.What Can a Workers' Compensation Insurance Company Take From Your Third-Party Settlement?Colorado law does not automatically let the workers' comp insurer take every dollar from your third-party settlement. The insurer's claim is tied to the benefits it paid for economic losses, such as medical bills and wage benefits. Some parts of a settlement, including pain and suffering damages, may not be fully subject to reimbursement.Before you agree to any settlement, have a workers' compensation lawyer review the insurer's lien. An attorney can help make sure the amount the insurer claims is legally supported.Why You Should Not Settle Your Third-Party Claim Without Insurer ApprovalUnder C.R.S. § 8-41-203, settling your third-party claim for less than your total workers' comp benefits without written insurer approval can forfeit your right to future credit for attorney fees and costs. It can also put your remaining workers' comp benefits at risk. The insurer cannot unreasonably withhold approval, but you still need it in writing before you finalize any deal. Do not sign anything before speaking with an attorney.Schedule a Free Consultation with a Fort Collins, CO Workers' Compensation Attorney TodayIf you were hurt at work and a third party may share responsibility, the work injury attorneys at Hoggatt Law Office, P.C. are ready to help. We will review your case and identify every source of compensation available to you. Attorney Hoggatt is a member of the Colorado Trial Lawyers Association and the Workers' Compensation Education Association. Our attorneys offer free consultations so you can get real answers with no upfront cost. Call theLarimer County, CO workers' comp lawyersat Hoggatt Law Office, P.C. at970-225-2190today.Se habla español.
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