What happens if my employers goes out of business while I’m on workers’ compensation?

Sometimes the employers of injured workers will go out of business while the injured worker is out of work and receiving workers’ compensation benefits. This can cause a lot of anxiety for the injured worker. However, it is important to remember that almost all workers’ compensation claims are paid by workers’ compensation insurance carriers. The workers’ compensation insurance policy that your benefits are provided under continues to exist even if the company that you previously worked for does not. In our experience, the company going out of business can actually make it easier to resolve the workers’ comp claim because the insurer wants to close the file that exists under a policy that they are no longer being paid for.