In California does workman's compensation insurance continue to cover an existing claim if the employer closes their business

Asked over 1 year ago - Burlingame, CA

Injured worker has been out of work for overuse injury to hands for several months.
Company is going to close.
Does the workman's compensation company continue to cover the medical expenses?

Attorney answers (7)

  1. Brett A. Borah

    Contributor Level 20

    3

    Lawyers agree

    Answered . Yes.

  2. George Ellis Corson IV

    Contributor Level 20

    2

    Lawyers agree

    Answered . Yes.

    We offer general concepts, but you should give ALL your facts to a licensed Attorney in your state before you RELY... more
  3. Gerald Franklin Batchelder

    Contributor Level 13

    2

    Lawyers agree

    Answered . If the employer had worker's compensation insurance at the time of your injury, the insurance company is liable for providing you with benefits. If your employer was self-insured for worker's compensation, and the entire company is being dissolved through bankruptcy, there is a separate fund that would step in to pay your benefits. If your employer was illegally uninsured, you would be able to collect your benefits from the Uninsured Employers' Benefit Trust Fund. In any event, your benefits should not be interrupted or lost due to your employer's business closing, unless part of your claim is for increased benefits that are ordinarily not covered by insurance, such as serious and willful misconduct or discrimination against injured worker.

  4. John M Connell

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . The insurance is not connected to the company so I agree that it continues

  5. James Mitchell Hoffmann

    Contributor Level 12

    3

    Lawyers agree

    Answered . In Missouri, the employer and the insurer are both parties. Provided the employer paid premiums through the injury date your claim will still be covered by the insurer regardless of the employer's status: unless bankruptcy is filed and then a stay maybe placed on your claim. Consult your local attorney.

  6. Bonnie Jean Binder-Wilson

    Pro

    Contributor Level 5

    1

    Lawyer agrees

    Answered . Yes, it is the insurance carrier who has responsibility for continuing your coverage. If the employer is self insured and goes out of business there is still coverage for your claim. If you have a question you can always ask the Information and Assistance person in your jurisdiction.

  7. Philip Scott Hedrick

    Contributor Level 10

    1

    Lawyer agrees

    Answered . Although not a California lawyer, in jurisdictions I am aware of the answer is yes. I strongly suggest that you consult a local workers compensation attorney.

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