Most times, a work injury is going to be obvious. An injured worker will usually know they were hurt, go to the hospital, get treatment, and file a claim for their injuries soon after. However, some injuries are harder to notice, and you might not realize you can file a Workers’ Comp claim until after the company you work for has already closed down or stopped doing business.
If you delay filing a Workers’ Comp claim or cannot discover that your injury was work-related until after the company closed down, you may still be able to file your claim if you are within the deadline. Usually, Workers’ Comp insurance carriers promise as part of your employer’s policy that they will continue to pay claims to injured workers even after the company stops doing business. This might make it harder to report the injury and figure out who to file the claim with, but our lawyers can help you with all of these technicalities.
For a free analysis of your claim, call our Certified Pennsylvania Workers’ Compensation Lawyers at Cardamone Law right away at (267) 651-7945.
Can You File a Workers’ Comp Claim with a Business that Closed Down?
Usually, when a business stops doing business, it does not stop existing right away. Businesses have set procedures as to how they close down, and they usually need to continue to exist on paper for a while so that they can settle up any debts or claims against them. In many cases, another company might even buy up the business, taking on their outstanding claims. At the very least, your Workers’ Comp claim should still be able to go through because the insurance carrier should still be on the hook for the company’s Workers’ Comp claims.
In any case, you must still report your injury within 120 days unless an exception applies, such as cases involving occupational cancer.
The Afterlife of a Business
During the life of a business, the company has to file with the Pennsylvania Department of State and the Department of Revenue to get permission to operate. While operating, there are rules to follow – such as providing workers with Workers’ Compensation coverage. When the business shuts down, the responsible parties often cannot just go away. Their licenses and registration papers will show who is responsible for the company’s outstanding debts and claims, and people can still potentially get the money they need from the company after it stops operating.
Many companies are also bought out, so if you lost your job during restructuring, there might be a successor in interest that you can file with, even if the original company you worked for has closed on paper.
Insurance Carriers
Employers throughout Pennsylvania use insurance carriers to take responsibility for their Workers’ Comp claims. These carriers, rather than the employer, are usually the ones to take in these claims, analyze them, and ultimately pay the claims. They are also the ones our Philadelphia Workers’ Compensation lawyers will typically fight in court to get you the benefits you deserve.
When a business closes, its Workers’ Compensation policy is usually still active, and any claims currently being paid out or new claims in the future can still be handled by the insurance carrier.
In the rare situation that the company you worked for closed and their insurance carrier closed down, the insurance carrier’s contracts will usually be sold off to another insurance carrier to take on. It is quite rare that there would be no companies left to handle your claim.
When Can You File Workers’ Comp After the Company Closes
As mentioned, most injured workers will know about their accident and its cause and file a Workers’ Comp claim shortly after the accident. However, there are a few situations where a delay might be acceptable, and you might not have everything together and ready to file until after the company you worked for already closed down.
Disasters
Sometimes a business closes because of a serious accident or disaster – a disaster that might have also been the source of your injury. If you worked at a refinery that closed down after an explosion or a restaurant that closed down after a tragic fire, it might be possible that you are dealing with your injury and your Workers’ Comp claim right as the business is closing down. Our lawyers can help you get the claim filed and paid, even if the company is on its way out at the same time.
Comas and Incapacity
If your injury involves serious brain trauma or puts you into a coma or makes you unable to deal with finances and Workers’ Comp claims, you cannot very well file your Workers’ Compensation claim right away. Your family might be able to file a claim on your behalf and get the case started, but if you have to wait until you recover to a state where you can talk to a lawyer about your case, it is always possible the company you worked for might have shut down in the meantime. While this is by no means a common situation, it is certainly a difficult one, and you should certainly get help from a lawyer.
Cancer and Occupational Diseases
Some injuries and health conditions like cancer are not always clear as to the cause. If you work in an industry that has a high incidence of cancer, it might be possible that you stopped working for an employer a few years ago, before the cancer appeared. The Workers’ Comp Act gives workers a little over 5 years to file a claim for cancer, and if your employer closed up shop during that time, it could complicate your case.
Difficulty Proving Cases
Some claims start right away, with injured workers knowing that they are injured and knowing that it came from work. However, it might be difficult to get the doctor’s appointments and medical evidence to prove your injury, symptoms, or disability level. This is common with conditions like CRPS and other “invisible” conditions. With a case like this, you could go months after reporting before your case is ultimately paid, but your employer cannot dodge paying by closing down their business in the meantime. Instead, the insurance carrier should pick up the case and ultimately pay the claim.
What Do I Need to File a Workers’ Comp Claim with a Closed Business?
There will be a few important pieces of evidence to win a case against a closed business:
Proof You Were an Employee
Workers can only file Workers’ Comp claims with a company that actually employed them. The insurance carrier may be wary of false claims, so you should have things like emails, pay stubs, employment contracts, and other proof that you worked there and that you were an employee. Independent contractors aren’t usually covered under Workers’ Comp.
Proof of Work-Related Injury
Work injury claims can only be filed if the injury happened in the course of your work duties or from dangerous work conditions. If the managers, supervisors, and coworkers who might have witnessed your accident are scattered and working in other places now, it might be hard to rely on them to vouch for you. Instead, your medical records, evidence of the accident, and any other records you might already have may need to suffice.
Proof of Disability
Work injury claims are best filed right away, as we can have doctors examine you and show you are disabled at that time from the injury. When we file claims later, it can be harder to show the initial disability was caused by this work injury, especially if you have already healed and returned to other work.
Proof of Lost Earnings
Whether you are claiming lost wages for a limited period or into the future, we need proof that your disability stopped you from working, as well as proof of your wages before and after the injury.
Problems with Filing Workers’ Comp Claims Against Closed Companies
When a company closes, they don’t stop functioning right away, and claims are still possible. Even so, they typically have four major problems that can affect your claim, some of which we already touched on:
Difficulty Finding Policy
Locating the insurance carrier or policy that covers the closed business might be difficult. Our attorneys can take care of this for you.
Difficulty Gathering Evidence
It can be hard to find records of who was working on the day of your injury, so locating witnesses can be hard. Security footage might also have long since been overwritten or deleted if you wait until the company closes to file your claim.
Difficulty Proving Disability
If you are already healed and back to work, we will need to rely on past medical records to show that you had a disability and lost wages because of it. That impact on earning capacity is an essential element of your case, and we cannot file a claim for wage-loss benefits without it.
Uncooperative Insurance Companies
Insurance carriers often dislike paying expensive claims for companies they have open policies with, let alone closed companies they are no longer receiving ongoing payment from. They may deprioritize the case and put up roadblocks to try to slow our Pennsylvania Workers’ Comp lawyers down, but we can file Claim Petitions in court to make sure they have to pay full attention to your claim and pay it as obligated under their policy.
FAQs for Filing Workers’ Comp with a Closed Business
Does a Closed Business Have to Pay Workers’ Comp?
If the insurance carrier was already paying your Work Comp claim at the time your business closed, the carrier has to keep paying it. If you file your claim with the Work Comp carrier after the business you worked for closed down, they likely still have to pay you, but only if you filed on time.
Do My Benefits Stop if My Workplace Closes?
Once the insurance company starts paying your benefits, they have to keep doing so, even if the company you worked for closes. This is part of the contract the insurance carrier has with your company.
Can I Settle a Workers’ Comp Claim with a Closing or Closed Business?
If you know your company is closing down, you may want to settle to make sure you have the money up front. When you settle a claim for a lump sum, they pay you all of the benefits you would have gotten over time, but all at once. This means there is no more administration of the claim left, so it is less hassle on the closing or struggling business.
How Long Do I Have to File My Claim?
Your initial notice of injury needs to be given to your employer within 120 days for your claim to be eligible, but it is expected within 21 days of the injury. You can file a Claim Petition in court within 2 years of the injury (usually filed after the insurance carrier denies your claim).
For certain occupational illnesses, the deadline is extended to a bit over 5 years (300 weeks from the last date of employment at the company).
How Do I Find Out Who to File a Claim With if My Company Closed?
Our attorneys can track down the public records of who is taking care of the debts and outstanding claims against a closing or closed company and find the insurance carrier responsible for paying your claim.
Am I Still Entitled to Compensation after a Company Closes?
Yes. Your right to compensation depends on the fact that you were injured in the course of your work. The fact that your company closed doesn’t stop you from getting the compensation you were already entitled to when they were still open.
Call Our Workers’ Compensation Lawyers in Pennsylvania
If you were hurt at work, call (267) 651-7945 for a free case assessment with our Bucks County Workers’ Compensation attorneys at Cardamone Law.
