If you are receiving workers comp benefits and find out the company you work for is closing, you may understandably be worried about what will happen to your benefits.
Getting injured while performing work duties can make you eligible for receiving workers compensation. If you have already been declared eligible for it and started receiving your payments, you might be more than worried to find out that the company you work for is close to or already closing.
Will you still receive the agreed payments or are you left injured, unemployed and in debt? You don’t have to worry, the compensation system is designed to protect your interests and help you sustain you and co-dependents in such cases.
How Does Workers Compensation Work Financially?
Just about every employer is required to be insured. The money you are receiving through your workers’ compensation plan does not come from the company’s profits, but it is paid by their insurance company.
This works like most insurance policies do: each entity insured through a company pays a certain amount of money, but not all companies that are insured need compensation at the same time. The collected money is used when an employee gets injured at work.
What Exactly Could Go wrong If Your Employer Closes Down and What Are the Solutions?
While the above scenario is the most common one, there are cases where it simply does not go this smoothly, for various reasons. Let’s explore some other possible situations.
If your employer was self-insured and now his business closes, you are still not left to handle this on your own. You can try to obtain the necessary funds from the Workers Compensation Insurance Fund. The state of Missouri has competitive state insurance funds together with private ones, and a state-financed fund can become a last resort option.
If your employer was not covered through an insurance policy, you can apply for unemployment compensation. It can help you stay above the ground when the medical bills are piling up, but it is not the best option out there. Discuss the matter with an experienced St. Louis work injury attorney to see if you have other chances.
If you are already receiving benefits, but you are not comfortable with the change in your employer’s operational status, you may consider
St. Louis Workers Compensation Lawyers
Each case can have unique circumstances, and the law is different in every state. If you find yourself in this situation, speaking with a St. Louis workers comp attorney will benefit you.
You may have to adapt your strategy to obtain the best possible outcome. Many insurance companies will go to great lengths to avoid payment. To protect you and your family, speak with an experienced attorney to ensure your rights are protected. Give us a call 24/7 (314) 361-4300 for a FREE consultation with an experienced attorney.