Dugan & Associates, P.C.
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Work Related Injury: Going Out of Business and Your Benefits

It seems simple enough; you shouldn't be punished for the fact that your employer or their insurance company goes out of business? Should your benefits be protected? Yes, exactly correct. Your benefits are not tied to normal business accounts, so when a business ceases to operate, your benefits will continue out of the protected accounts. This post will go over how your benefits continue and what you should do if they stop.

Workers' compensation is regulated by the state. All employers are required to remit weekly or monthly payments to an insurance company. If your employer goes out of business, that money is held in trust by the insurance company for the benefit of the workers. Therefore, if your company goes out of business, it does not affect your benefits. Similarly, if your company goes out of business, your benefits should not cease.

But if your employer goes out of business, it could affect the status of your claim. For instance, if you were recently injured and you file a claim that is contested. If your employer goes out of business, it could delay review of your claim because the insurer will struggle to get the requisite information.

Second, some benefits are tied to your ability to return to work. If your employer does not exist, you cannot return to work, and those benefits may be forfeit. In either of these situations, an attorney can help you navigate the issues to ensure speedy resolution of your claim.

If you were injured in a workplace accident, then you may want to contact a lawyer for assistance. As you can see, your benefits exist in the real world, and sometimes situations beyond your control can affect or influence them. If you believe your benefits were halted because the insurance company went out of business, a lawyer can help. As you can see, your benefits are protected and should not be subject to a bankruptcy hold or creditor's claims.

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