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Law Offices of Jeremy K. Lusk, Inc.

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If my employer goes out of business do I lose my workers' comp?

Being injured on the job can be very stressful, and so can going through the workers’ compensation process.  Then to top it all off, in the midst of your claim, you find out your employer goes out of business.  Will that affect your benefits or settlement?

By law, all employers are obligated to pay for workers’ compensation coverage for their employees in the event of injuries on the job.  There are some exceptions to this rule depending on what kind of employer you have or if you fall in a different employee classification.  But the general rule is that your employer will have workers’ compensation insurance coverage through an insurance company.

An employer paying for workers’ compensation insurance is similar to paying for car insurance or health insurance.  You have that insurance so if something happens, you are not stuck paying for the entire bill out of your pocket.  This is sort of the same situation for employers.  Once you file the claim, and assuming the employer was properly covered with workers’ compensation insurance, the insurance company will be responsible for paying your benefits.  The payment of benefits by the insurance company is not dependent on the status of your employer’s business.  The insurance company, which is typically a private party, is the party responsible for administering/furnishing the benefits to you and not the employer, meaning it is not coming out of the employer’s pocket at that point.

Your case is not dependent upon whether the employer is still in business or out of business.  The factors of your case depend on your injuries, the extent of your injuries and your employment status at the time of your injuries. 

If you have questions about your workers' compensation injury and want to talk to an attorney in Fresno, please call 1(559) 408-7436 or fill out the form to the right.