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Workers' Compensation
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Are workers protected if an employer or an insurance company goes bankrupt?
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Answer:
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There are two provisions in the law to protect workers in the event of bankruptcies. The Self-Insurers' Security Fund is funded by assessments on other private self-insured employers. Should a private self-insured employer go bankrupt, the Self-Insurers' Security Fund has the responsibility for making payments to injured workers. Should this occur, it is very important that the injured worker give notice of his or her claim to the Self-Insurers' Security Fund immediately. There is also a guaranty fund which assumes responsibility if an insurance carrier is liquidated.
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