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Workers' Compensation Continues, Even If Your Employer Does Not

Posted on in Workers' Compensation

Workers' Compensation Continues, Even If Your Employer Does NotWhat will happen to your workers’ compensation claim if your employer goes out of business? This scenario does happen and leaves claimants worried about whether they will receive the benefits they need while they recover and look for a new job. Fortunately, the status of your employer will not affect your workers’ compensation claim in most cases. The process could take a little longer, but the end result should still cover your medical expenses and lost income.

Insurance Coverage

Most employers provide workers’ compensation insurance through a third-party insurance company, who is responsible for paying your benefits. Your employer going out of business does not change the insurer’s ability to cover you in the event of a successful workers’ compensation claim. However, the process can be slower if your employer is unable to help its insurer with the case. There may be no one left in your employer’s human resources department to:

  • Assist the insurer with investigating your injury; or
  • Give the insurer your wage records.

You can provide paycheck stubs or other pay records to help move the process along. In some situations, your employer being closed can help with your workers’ compensation claim. The insurer likely wants to close your case quickly because your employer is no longer a paying client. A prolonged court battle may not be worth the cost to them.

Disability Pay

Workers’ compensation benefits often extend into the time that you are recovering from your injury. You could receive:

  • Temporary Total Disability if you are incapable of returning to work but expect to recover; or
  • Permanent Partial Disability if you are capable of returning to work but have permanent work restrictions.

If your employer goes out of business, the insurer will continue paying your TTD benefits until you have reached Maximum Medical Improvement. The value of your PPD benefits could increase because you no longer have an employer to return to. Your employer may have allowed you to work within your restrictions while paying you the same wage as before your injury. You may be unable to find another job that will pay you as much because of your disability, which would entitle you to wage differential benefits.

Contact a Crystal Lake Workers’ Compensation Lawyer

Losing your job while recovering from a work-related injury is stressful, but your benefits should still help you while you transition back to full employment. A McHenry County workers’ compensation attorney at Botto Gilbert Lancaster, PC, will make sure that your claim is handled in a timely fashion. To schedule a free consultation, call 815-338-3838.



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