The past couple of years have been difficult ones for many companies – particularly smaller ones. A lot of businesses have had to close their doors for good. Maybe your employer was able to hang in there.
But what happens if you were injured and have filed a workers’ comp claim – or you’re already receiving workers’ comp benefits – and your employer goes out of business? Does that affect your benefits?
The insurer – not the employer – pays the benefits
The good news is that your employer is not the one paying your benefits. According to Pennsylvania law, any employer in the state with at least one employee is required to have workers’ compensation insurance. That’s true even if there’s one part-time employee who’s a relative of the owner.
However, the benefits are actually paid by the private insurer that covered your company. If your employer declared bankruptcy or closed the business completely, that doesn’t mean your claim won’t be paid.
Why you might still have issues
There may be some delays and issues, however. For example, if you filed your claim recently and it’s still under review and investigation by the insurer, they may have a difficult time getting in touch with or getting answers from your employer if everyone at the company has moved on.
If your injury or illness has left you unable to work (even if the company was still there), there could be complications as well. It may be difficult to determine the length of time you can receive benefits if there’s no job (either yours or another one at your company) to return to.
Are you having trouble getting your workers’ comp claim approved or have your benefits have stopped because your employer is no longer around? Find out what your options are.