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The workers' compensation insurer pays the employee benefits for a work-related injury. In many states, it is the sole remedy of the employee in the sense that the employee is prohibited from suing the employer for negligence that caused or contributed to the occurrence. It may also pay for injuries and lost wages resulting from a work-related incident when another person or entity caused it.

The employee sometimes sues a third-party for injuries and/or lost wages stemming from the incident. If so, the workers' compensation insurer ordinarily asserts a lien on the recovery to the extent of its payment. That said, courts of different states have outlined the circumstances under which the insurer can recover from the proceeds of the suit, and how much.

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14y ago

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