Work comp claims are complicated, but when your employer goes bankrupt, things can get even more confusing. In this article, we will offer some tips for what to do if your employer files for bankruptcy in the middle of your work comp claim.
When Employers Go Bankrupt
Companies go bankrupt all the time, and many employees wonder what will happen to their work comp claim if their employer goes under. The first thing we need to discuss is how exactly work comp claims and payments work. When an employee is injured at work and is due benefits, the company is not paying these benefits out of their operating account. Minnesota has its own worker’s compensation system into which all employers pay into. So when an employee is injured on the job, benefits are paid out by private insurers.
Legally, all companies in Minnesota are required to carry worker’s compensation insurance. Typically, employers pay into their work comp fund on a weekly, monthly, or yearly basis. So if your employer has been making their payments, you will still be covered even if they go out of business. If they haven’t been making their payments, you may need to take a different approach.
Other Issues
There are a few contextual issues that may impact your claim when an employer goes out of business. If your claim is still under investigation, bankruptcy may delay your benefits. Also, if your employer is self-insured, the work comp process becomes much more complicated. In all of these scenarios, it’s a good idea to consult with a work comp attorney.
If you have questions about your work injury or work comp claim, call 844-Hey-Workers. At Hey Workers, injured workers are our first priority. We specialize in connecting Minnesota workers who have been injured on the job or on the road with local attorneys and doctors. It costs absolutely nothing to call 844-Hey-Workers for a free and confidential consultation about your injury case. Let us help you navigate the medical and legal challenges of your work injury so you can focus on recovering.
