What Happens to My Worker’s Comp if the Company Closes?
Any time that an individual sustains an injury while at work, he or she is eligible for financial compensation from the employer to help cover medical expenses. Most of the time this goes smoothly, but there are circumstances that can complicate the process. One such situation that could arise would be if someone is injured while on the job, but the company shuts down before the claim can be followed through on and the funds dispensed. What happens under these circumstances?
The simple answer is that, yes, one would still receive worker’s compensation if the employing company closes. This is because the money for worker’s comp does not come from the business itself, but from a statewide insurance system. Therefore, even if the employing company does not have enough money to provide worker’s comp, the insurance company does and the funds will be administered from them.
The caveat to this is that the process may be delayed or even challenged because the insurance company would be unable to get sufficient information from the employing company. Most of the time, they will use this as an excuse to grant a smaller settlement and little funding or refuse to grant any compensation altogether. This is not a correct process however and, if this happens to you, you should seek the advice of an attorney and fight for your right to worker’s comp.
We at the Franco Law Firm have helped many individuals win their worker’s compensation cases and we would be happy to help you with yours. For more information and to schedule a free consultation, please call us at (813) 872-0929.