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Are employees protected if a workers comp insurance carrier goes out of business or files for bankruptcy?

April 26, 2017Bankruptcy Business employees files Insurance protected Workers

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Posted

Are employees protected if a workers comp insurance carrier goes out of business or files for bankruptcy?

2 Answers

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Brittany Jones Posted

Yes, the state will typically cover it. It’s similar to unemployeement.

http://www.idocomp.com/workerscomp.html

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Posted

• Yes. Most states have a guaranty fund to cover claims when an insurer is insolvent. Contact your state’s industrial commission or insurance regulation department for specifics in your state.