What happens to my workers’ comp benefits if my insurance provider goes bankrupt?

A new insurance provider.

According to the law, it is your employer’s responsibility to secure workers’ comp insurance. If your old insurer has gone out of business, it is the employer’s duty to secure a new policy or self-insure, meaning the company itself would be liable for your injury payments.

Your employer.

If your employer has allowed insurance to lapse and has not secured a new policy, employees can sue the employer directly to recover the costs of an injury. If the employer and insurer have both filed for bankruptcy, employees can seek compensation from the Uninsured Protection Fund.

The Uninsured Protection Fund.

In March, Rhode Island lawmakers passed an amendment to the Rhode Island Uninsured Protection Fund (UPF) guaranteeing injury payments for employees of uninsured employers. The fund provides payment for disability (incapacity) and reimburses the employee for any court costs needed to pursue the case. However, the UPF does not pay for past or future medical expenses, loss of function, or disfigurement.