Status of workers' compensation at a bankrupt company

Many employees at struggling companies fear that their workers' compensation benefits may be in jeopardy. For instance, if a company files for bankruptcy, some employees believe they will stop receiving workers' compensation payments for their previous job-related injuries. 

That belief, howerver, may be slightly misguided. For most companies, employee workers' compensation payments actually come from the company's compensation insurance provider. As long as the company has kept up with its insurance premium payments, then the workers' compensation payments should continue at their normal amount. And even if a company has allowed its workers' compensation insurance to lapse, employees may still be able to seek benefits.

If you are worried about your workers' compensation payments, contact the Iowa workers' compensation lawyers of LaMarca Law Group, P.C. at 877-327-2600.


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