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Do I Still Get Workers' Compensation Benefits if my Workplace Goes Out of Business?

When you successfully settle your workers’ compensation claim and begin receiving benefits, those benefits will likely be administered as periodic payments. Depending on the terms of your settlement, you may get checks until you recover, or continuously if you sustained a permanent disability. Once you begin receiving compensation, you should keep getting paid until an agreed-upon date that is negotiated during the claims process.

You may be curious about if there are any reasons your benefits could be cut off. It is natural to worry about the “what-ifs” when you are totally relying on those benefits for financial stability. One circumstance that may enter your mind is the possibility of your place of work closing down: If this happens, will you still receive your workers’ compensation benefits?

Yes! Workers’ compensation payments are allocated by your state’s workers’ compensation system and your workplace’s insurance provider. The company where you worked when you were injured purchased a workers’ compensation insurance policy, but beyond that, is not necessarily responsible for administering the benefits. Your employer will most likely be involved in the negotiation process, but once you reach a settlement agreement they are not really involved in the allocation of your benefits.

If your former workplace is no longer in business and you stop receiving your workers’ compensation benefits, an error has occurred. The insurance provider should still be sending your benefits — contact our workers’ compensation lawyers if your benefits have wrongfully ceased.

Were you injured on the job, and have questions about your rights during this time? Contact Humphrey & Associates. Our attorneys are available to discuss the details of your case and represent you throughout the workers’ compensation claim process.

Schedule a free consultation with our team by completing our contact form, or by calling (844) 612-5800.