can I get workers compensation when company goes out of business?

Do I Still Get Workers’ Comp If My Employer Goes Out of Business?

A workplace injury can cause a lot of stress, financial anxiety, and uncertainty. Not only are you bringing in less money than you would be if you were working, but there’s always the fear that workers’ comp will suddenly stop paying you. Then you find out that your employer is going out of business, and an already uncertain situation becomes even more unstable. What happens to your workers’ compensation claim if your company closes?

We know workers’ comp claims can be time-consuming and tedious. We’re here to help you every step of the way. Call Thiry & Caddell at 251-478-8880 to schedule a consultation now.

How Claims Are Paid Out

First, understanding how workers’ compensation claims are paid out may ease some of your stress if your employer is closing its doors forever. An insurance plan from a workers’ compensation provider works the same as just about any other insurance plan. Your company pools its money with several other companies.

When a legitimate claim is filed, it is paid out from that pool. It is not paid out only from your employer’s funds, nor does your employer typically pay in anything extra to cover your claim. Because of this, you don’t have to worry about the source of your payments drying up when your employer closes. Your employer has still paid for that policy, and you are still able to draw from that pool.

In general, this means that you can still collect benefits when your employer closes. However, it is recommended that you keep an eye out for phone calls or letters from the workers’ compensation insurance provider, so you know if anything changes with your benefits.

The Timing Matters

However, the timing of your workers’ compensation claim matters. If your claim has been investigated and verified when your company closes, their closure will probably not affect your workers’ compensation payments. It may be more complicated if your company closes early in the claim process. The insurance provider requires certain documentation from your employer to process and verify the validity of your claim.

If your employer is trying to evade financial responsibility or simply doesn’t prioritize their workers’ comp claims, it’s possible that the insurance company will have a hard time getting them on the phone. If they delay in sending in necessary documentation, the workers’ comp provider could be stuck sitting on your claim for a while. This delays your benefits and puts you in a more unsteady financial position.

This shows how important it is to file a workers’ compensation claim as soon as possible after an accident. Gather the necessary evidence and file immediately. Do not wait around for approval from your company. The longer you wait to file your claim, the harder it will be for the insurance company to verify it. Furthermore, you have no way of knowing your company’s delays are legitimate or if they are delaying your claim in bad faith. If they know the company is about to go under, they could be trying to minimize the financial fallout.

Returning to Work

Another issue that can disrupt your benefits is the fact that you can’t return to work at a company that no longer exists. Some benefits require you to be ready to return to work as soon as you are physically able to do so. The workers’ compensation insurance provider will have a difficult time figuring out if you can return to work, especially if there aren’t any competing companies nearby. Try not to worry about this ahead of time, particularly if you have a long road to recovery ahead of you. If the company does refuse to pay out benefits because they believe you are ready to return to work, a workers’ compensation attorney can help you explore your options.

Contact Thiry & Caddell to Discuss Your Workers’ Compensation Claim

Has a workplace injury left you unable to provide for your family? Get the protection and benefits you deserve with the help of Thiry & Caddell. Whether you are ready to file a claim or you’re running into resistance from your company, we’ll guide you through the process. Schedule a meeting now by calling us at 251-478-8880 or contacting our team online.

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