Can You Still Get Worker's Compensation If Your Company Folds?
Suffering an injury while you are on the job can be a very stressful event. In addition to dealing with an injury, you also have to worry about how you are going to pay all of your medical and daily living expenses. Fortunately, that is where worker's compensation benefits can be helpful. Employers carry insurance that will pay for the medical care and disability benefits of their employees if they are injured while they are performing the duties of their job.
In some cases, an employee can receive worker's compensation for months or even years. However, there are times when a company, for whatever reason, decides to cease operations and close. This can be concerning if you are relying on disability payments from the employer's worker's compensation insurance. The following are some thing you should know if your company is in danger of closing while you are receiving worker's compensation benefits:
Will You Still Receive Payment?
The quick answer is yes, you will continue to get your worker's compensation benefits from the insurer if your employer decides to close up shop. At least temporarily, you will be able to collect your monthly payments.
How Are Worker's Compensation Payments Protected After a Closure?
If your employer closes, you are still going to be paid. The worker's compensation benefits are not paid to you directly from your employer. Instead, they come from an insurer that your employer paid premiums to on a regular basis. The insurer is in private business that is separate from your employer and is therefore not affected by a closure. Just like any other insurance policy, not all employees are going to need to be paid by the money that your employer has paid. That means that there will be money to continue paying your claims.
Are There Any Potential Issues to Face After a Closure?
One thing you must remember is that there are some potential issues that could arise when it comes to getting paid your benefits if your company closes. For example, if you filed a worker's compensation claim just before the company closes, there could be a lag in getting your payments going. With all that goes into closing a business, your employer may not send in your claims documentation as quickly due to dealing with all a comply closure entails. In this instance, it could be devastating for you. If this happens to you, you need to contact a workers comp attorney as soon as possible. You are entitled to that money and your lawyer will help to get the ball rolling with your employer so that you will not be without income for too long.