Illinois workers’ compensation doesn’t end if employer goes bankrupt
In Illinois, workers' compensation benefits continue even if your employer is bankruptMost employers purchase workers' compensation insurance to cover their employees. They are required by law to do so. When a worker is hurt on the job, it's the insurance company that pays benefits, including medical bills and lost wages. So if the employer files for bankruptcy, the insurance company must still pay. It's possible that the bankruptcy filing may cause a delay in receiving benefits, but your benefits will not be terminated.
Even if your employer is "self insured" your benefits will continueSome employers have the option of being self-insured, meaning that they have the resources to pay workers' comp benefits and deal with injury claims in-house. Even if your employer is in this category, bankruptcy will not end your benefits. Illinois has something called the Illinois Insurance Guarantee Fund to pay benefits if a self-insured employer shuts down. The fund also is available in case an insurance company goes out of business. Again, there may be a delay involved, but your benefits are safe.
Reminder: Don't believe everything your employer or their insurer tells youBankruptcy is one of the situations where you hear a lot of people guessing at what will happen. If someone tells you that your benefits will be terminated, don't just believe them. Ask an attorney. The employer and their insurance company probably will not look out for you. A good attorney will.