Penalties for late workers comp checks in Michigan

Michigan workers comp lawyer explains penalty rules and how much you can collect from the insurance company.

I have written in the past about how devastating a work injury can be for a family. This is especially true when the primary wage earner is disabled.

Wage loss benefits are supposed to start on the 8th day of disability. The first check should be received approximately a week later. Missing or late checks can be a disaster.

Unfortunately, it can take some insurance companies weeks or months to process a claim. This can be delayed even more if the employer refuses to cooperate.

Penalties

There is a $50 per day penalty if wage loss benefits are not paid within 30 days of becoming due.  This penalty is subject to a maximum of $1,500.

A penalty may also apply to medical bills that are not paid within 30 days after the insurance company receives notice of nonpayment by certified mail. This penalty is limited to $50 or the amount of the bill if it is less.

Penalties only apply to claims that are not disputed. Even frivolous defenses allow the insurance company to escape paying.

Collection

Most insurance companies deny penalties even when they are clearly in the wrong. It does not help that $1,500 is the maximum regardless of how many times the insurance company is late.

We recommend that you contact an experienced workers comp lawyer if benefits are not promptly paid. Missing or late checks are often a warning sign that you claim will be disputed.

Call (855) 221-2667 to speak with one of our Michigan workers comp lawyers. We give free advice and never charge a fee unless you are successful with your case.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.

Related information:

When will I get my first workers comp check in Michigan?

Photo courtesy of Creative Commons, by Attract Wealth and Prosperity.

06/01/2013
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