Question: I have been out of work for over a year due to a work injury. I just heard a rumor that my employer is going to file for bankruptcy. Will I still get me workers comp checks if the employer goes bankrupt? Name and address withheld, Northeast Pa.
Answer: If your injury occurred when your employer was covered under a workers compensation policy, the employer’s bankruptcy will have little or no effect on the workers compensation claim as it is the insurnace carrier and not the employer who is paying the claim. There are, however, certain circumstances where the workers compensation insurance policy calls for the employer to pay a certain percentage on the claim before the insurance carrier’s liability kicks in. This is similar to a “deductible” that you would have on a homeowner’s or auto insurance policy. There are also security guaranty funds set up by the Commonwealth of Pennsylvania to protect injured workers in the event that a self-insured employer or insurance carrier either becomes insolvent or if the employer does not have workers compensation insurance coverage. These security guaranty funds are funded by surcharges added to workers compensation insurance premiums.
If you’ve suffered a work injury and have questions about your claim, contact me at tcummings@dlplaw.com or call (570) 347-1011 for a free consultation.
