Worker's Comp During A Business Closure: What You Should Know

Posted on: 4 October 2018

An injury at work is common in many industries, unfortunately. Employees have the right to file for Worker's Compensation benefits to help cover their medical costs and living expenses until they can return to work. However, many wonder what could happen if the business shut its doors. The following is what you need to know should you file for benefits and your workplace closes:

Can You Still Receive Your Benefits?

Fortunately, your Worker's Compensation benefits are managed by an outside insurance carrier. Your employer purchases Worker's Compensation insurance for the purpose of paying employees who are injured on the job. Your employer pays a certain amount of money towards an insurance premium each year, much like you would do for automobile or homeowners insurance. When you need to make a Worker's Compensation claim, you will contact the employer's insurance carrier. Because your employer does not make Worker's Compensation claims payments on a regular basis, the premium will still cover you for a period of time even after the business closes. Your payments are not managed by the employer, but by the insurance carrier.

Are There Any Possible Issues After a Business Closure?

Although you should have few issues receiving your Worker's Compensation benefits after your workplace closes, you could face some adversity regarding your payments. The timing of your claim has a lot to do with potential issues. If you file your claim right at the time of business closure, you may experience a longer waiting period for approval until the paperwork is complete. Since the employer is busy with the closure of the business, they may take longer than normal to submit the paperwork to the insurance carrier. You may have to contact your human resources department to remind them to submit the information so you can receive your claim. If the timing becomes excessive, you may need to contact your attorney to send a reminder to your employer.

You may also experience an employer who has not made regular payments to their insurance carrier. If this happens, contact your attorney immediately. By law, employers are to carry Worker's Compensation insurance. If you are injured on the job, you need to have an income to support yourself. If your employer cannot provide Worker's Compensation coverage, you may have to file a lawsuit to help recover your damages.

Injuries at work can cause a permanent disability, leaving you with no make to make an income. You are entitled to Worker's Compensation benefits, despite the status of your workplace. If you need assistance with your claim, please contact a Worker's Compensation lawyer right away.