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Can I Still Receive Workers’ Compensation If My Evansville Employer Goes Out of Business?


Over the past few months, the nation has been shocked to watch the well-known children’s toy store franchise, Toys“R”Us go out of business. Every single location, including the Toys“R”Us and Babies“R”Us in Evansville, shut their doors this year after 70 years of business.

When a business closes for good, it can be devastating to the local community. Along with the end of the store comes the end of employment for many people who depended on that income. In addition, there might be many people who are dependent on workers’ compensation that they filed for when they were injured on the job for that business.

If you are receiving workers’ compensation from any employer, whether you believe they will go out of business soon or stay in business for the years ahead, it is important to know that no matter what happens to the business, your workers’ compensation payments should remain. However, you should be aware of a few key factors that may arise:



When considering how much your workers’ compensation will be affected by a business’s closing, it is important to understand where the compensation comes from. Contrary to popular belief, the business is not actually the one signing your checks. Every company is required by state law to have workers’ compensation insurance. So, while the company pays for this insurance every month, it is the private insurer that is responsible for providing you the agreed upon workers’ compensation amount each month. Therefore, even if the company goes out of business, your workers’ compensation should be unchanged from what was agreed upon when you were first injured.

Delay in Claim


Like all things in the legal field, these issues are not always as black and white as they may seem. If you have been receiving workers compensation for months at the point of closure, then you will likely see no change or complications. However, if you are only in the beginning stages of filing a claim for workers’ compensation, this claim may be delayed. In order to finalize your payment information, the insurance company must be able to communicate with your employer. If they are unable to get in touch with this employer because the business is closed, it could pose many problems and delays for the approval of the workers’ compensation.

Ability to Return


Some cases of workers’ compensation are dependent on your ability to return to work when the injury is healed. This situation becomes much more difficult to determine in the case that the business closes before you can return. This will have an impact on the benefits that you receive and the duration of time that you will be able to receive them.

Help from an Evansville Workers’ Compensation Attorney

If your workers’ compensation was negatively affected by the closing of a business, you might be cheated out of money that is rightfully yours. To better ensure that you receive the compensation that you deserve for an injury you suffered while on the job, it is important to have an experienced attorney fighting on your side. Call Hensley Legal Group today for a free consultation or contact us online.