Miami, FL asked in Workers' Compensation for Florida

Q: What happens to my workers compensation if my employer goes bankrupt?

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1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Freeeport, FL
  • Licensed in Florida

A: There are several types of bankruptcies: Chapter 7, Chapter 11, and Chapter 13 are the most common.

I'm not sure whether you are asking about ongoing workers compensation insurance, or compensation for a previous injury. If it's the latter, the insurance carrier would be obligated to pay the claim. If it's the former, it will depend upon the bankruptcy chapter under which your employer files. For Chapter 7, if the employer intends to continue to employ you, your employer would need to secure post-petition coverage. For Chapters 11 or 13 (11 being the most likely), the debtor (your employer) might continue to do business, in which case he, she, or it would also have to have workers compensation coverage in place.

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