Will I Still Get Workers’ Comp if My Employer Goes Out of Business?
It is always troubling when an employer goes out of business, particularly for those who are filing a workers’ compensation claim.
No employee wants their employer to go out of business. When a business closes, it is not only the employer that loses their livelihood. The many employees who work in that business are also out of a job, and that is just as devastating. Some employees, though, face unique challenges when their employer goes out of business. These are individuals who have filed a workers’ compensation claim. These workers often fear being denied the benefits they need after a workplace accident. Fortunately, workers can still claim benefits even if their employer goes out of business.
Insurance, Not Your Employer, Pays Workers’ Comp
All employers in Nebraska are required to carry workers’ compensation insurance. Business owners pay their insurance premiums every month and if an employee becomes injured on the job, the worker can file a claim for benefits. Fortunately, workers’ compensation benefits are paid out by the insurance company, not the employer. The insurance company is responsible for paying those benefits to injured workers, regardless of whether the business is afloat or not.
There are times when employers do not follow the law and neglect to purchase workers’ compensation insurance. In this instance, you would not be able to claim workers’ compensation benefits whether your employer was still running their business or not. You may, however, file a personal injury claim against your employer for their negligence. Receiving compensation from an employer who could not save their own business does present other challenges.
Challenges When Filing Workers’ Comp After Employer Goes Out of Business
Your employer going out of business will not affect the benefits you receive, if your employer purchased the insurance. Still, there are some challenges to consider.
If you filed your claim shortly before your employer went out of business, the insurance company may still be investigating your claim. This is a standard practice. The insurer will need a lot of information from your employer and if they cannot receive it because your employer went out of business, that could result in a denial of your claim.
Also, many workers’ compensation benefits are calculated on whether you can return to work, and when you will return. If your employer has gone out of business, you may not return to work for some time, or you may not know when you will return to work. Both of these issues can impact the amount of benefits you receive.
Call Our Workers’ Compensation Lawyer in Omaha Today
If you have been injured at work and need to file a claim, our Omaha workers’ compensation lawyer at Andres Law Offices, PC, LLO, is here to help. Our seasoned attorney has the necessary experience with these claims to overcome the many challenges they sometimes present. Call us today at (402) 491-4003 or contact us online to schedule a consultation and to obtain the sound legal advice you need.