Sometimes, companies go under. It can happen to small mom-and-pop shops and even multinational giant businesses. But if your company is going under and you have an open worker’s comp insurance claim, you’re likely not just worried about finding new employment.
So what happens to your benefits if the business you work for is closing up shop?
You Should Generally Be Covered
The money you receive as part of your worker’s comp benefits isn’t coming from the pockets of your employer. Missouri requires all businesses with more than 5 employees to carry worker’s comp insurance, in which case they find a private insurance company and buy the coverage. What the coverage costs your employer can depend, as well as when and how they make the payments.
But in any case, they are not paying your benefits directly. The money you receive as part of lost wages, as well as the coverage for medical expenses, comes from the pockets of the insurance company.
The law says your employer must have worker’s comp insurance for their employees, not that they have to pay the benefits directly. Based on this principle, if the company you work for goes under, you should generally still be receiving your benefits.
There May Be Some Kinks
If your claim is still open, meaning it was still being discussed and you don’t receive any benefits yet, it’s possible for the entire process to drag on longer if the company is closing. And the main reason why is most likely that the insurance company will have some trouble communicating with your former employer.
Additionally, if you receive benefits for lost wages, this could also pose a problem if the company goes under. Lost wages are calculated at two-thirds of your average weekly salary, but if there’s no company to speak off, there’s no salary either.
Lastly, it is also possible for the insurance company to try and get rid of your case, given that your employer is no longer paying for the coverage. Technically, they can’t do anything until the doctor decides you’ve reached maximum medical improvement, though they may try to offer a quick settlement to wrap the case up sooner.
It’s important to remember that you should never accept any offer until you’ve discussed it with an experienced St. Louis worker’s compensation lawyer first. It’s not your concern whether the insurance company is still getting payments from your employer or not.
Do You Need a Workers Compensation Lawyer?
Do you have an open work injury claim and your employer has closed up shop? Get in touch with a St. Louis worker’s comp lawyer for a free consultation and personalized legal advice on how to proceed. Your benefits should not be affected by this situation, and a lawyer can ensure your rights are protected.