The past couple of years has been tough on many businesses. Some have had to close their doors permanently. So what happens if you’ve had to take time away from work while you heal from a work-related injury or illness and your employer goes out of business? Maybe you were back at work, but you still require medical care/ Can you continue to receive the workers’ compensation benefits that you and your family have been relying on?
The good news is that if you were already approved for workers’ comp, this should have no effect on your payments. You are likely being paid by your employer’s workers’ comp insurer. New Jersey law requires any employer not covered by a federal workers’ comp program to have insurance through an approved provider or be self-insured.
Not just any employer can meet the New Jersey Department of Labor and Workforce Development requirements for workers’ comp self-insurance. It must show that it can “meet its obligations under the law…” Even those businesses that self-insure often have an insurance provider that handles their claims.
When there might be complications
If your workers’ comp claim is still under review when your employer goes out of business, there could be delays in the investigation of your claim – especially if the owners have disappeared or simply aren’t being helpful about providing information.
Another possible complication is that if you were unable to resume your job because of your injuries or illness, it can be more difficult for the insurer to determine whether or not you’re able to work or not if you can’t go back to your previous employer.
While the end of a business shouldn’t mean the end of your workers’ compensation benefits, it can make things more difficult for you. If you’re having problems getting the compensation you need and to which you’re entitled, it may be necessary to seek legal guidance.