If your employer does not have workers’ compensation insurance, you still have legal options.. You can file a claim through the Uninsured Employers Guaranty Fund (UEGF), a state program that pays benefits when employers lack coverage. You can also sue your employer directly in civil court for pain and suffering, emotional distress, and full damages. Pennsylvania law requires virtually all employers to carry workers’ compensation coverage, and companies that fail to do so face serious penalties.
At Luxenberg Garbett Kelly & George P.C., New Castle workers’ compensation lawyer Lawrence M. Kelly helps injured workers throughout New Castle, Lawrence County, and Pennsylvania recover benefits when employers ignore the law. Our team of Pennsylvania personal injury attorneys fights to hold uninsured employers accountable and get you the full compensation you deserve.
This guide explains what happens when a company does not have workers’ comp insurance, how to file claims through the UEGF, when you can sue your employer, and what penalties uninsured employers face.
Are Employers in Pennsylvania Required to Carry Workers’ Comp Insurance?
Under the Pennsylvania Workers’ Compensation Act (77 P.S. § 1 et seq.), virtually all employers must provide workers’ compensation coverage. This requirement applies to businesses of all sizes, including those with just one employee. The law protects workers by ensuring they have access to medical treatment and wage replacement benefits if they are injured on the job, regardless of who caused the accident.
Employers purchase workers’ compensation insurance policies from private carriers or self-insure if they meet specific financial requirements. Once coverage is in place, injured workers can file claims directly with the insurance company or through the Pennsylvania Bureau of Workers’ Compensation. The system is designed to provide benefits quickly without requiring workers to prove fault.
Businesses that fail to carry required coverage violate state law. When employers skip insurance to save money, injured workers face delays and uncertainty. However, Pennsylvania has built-in protections to ensure that workers still receive benefits even when their employer is uninsured.
Key Takeaway: Pennsylvania law requires virtually all employers to provide workers’ compensation coverage. This protects workers by guaranteeing access to medical benefits and wage replacement after workplace injuries.
What Is the Uninsured Employers Guaranty Fund?
The Uninsured Employers Guaranty Fund (UEGF) is a state program that pays workers’ compensation benefits when an employer does not have insurance. Created under Pennsylvania law, the UEGF acts as a safety net for injured workers who would otherwise have no way to recover medical expenses or lost wages.
When you file a claim through the UEGF, the fund provides the same medical treatment and wage replacement benefits you would receive from a private insurance carrier. After paying benefits to injured workers, the UEGF pursues the uninsured employer to recover every dollar spent, plus interest and penalties. The fund has broad legal authority to collect these costs, including filing liens against business property, garnishing bank accounts, and pursuing personal assets if the business is structured as a sole proprietorship or partnership.
The UEGF also investigates uninsured employers and refers cases to law enforcement for criminal prosecution. Employers who fail to carry coverage face fines, imprisonment, and financial liability.
Key Takeaway: The Uninsured Employers Guaranty Fund (UEGF) pays workers’ compensation benefits when employers fail to carry insurance. The fund later recovers costs from the employer, plus penalties and interest.
How Do You File a Claim with the Uninsured Employers Guaranty Fund?
Filing a claim with the UEGF follows a similar process to a standard workers’ compensation claim, but with additional steps to confirm the employer’s lack of coverage. You must first report your injury to your employer within 120 days, even if they are uninsured. Exceptions apply in cases where the employer already knows about the accident.
After reporting the injury, contact the Pennsylvania Bureau of Workers’ Compensation to verify whether your employer has active coverage. The Bureau maintains records of all insured employers and can confirm whether your company holds a valid policy. If the employer is uninsured, you can proceed with filing a claim through the UEGF.
To file a UEGF claim, complete a Claim Petition and submit it to the Bureau of Workers’ Compensation. Include documentation of your injury, such as medical records, witness statements, and proof of employment. The UEGF will investigate your claim, verify the employer’s lack of insurance, and begin processing your benefits. Legal representation can help you gather evidence, meet deadlines, and ensure the UEGF processes your claim correctly.
| Filing Step | What to Do | Key Details |
| Report Injury | Notify employer within 120 days | Required even if the employer is uninsured |
| Verify Coverage | Contact the PA Bureau of Workers’ Comp | Confirm the employer has no active policy |
| File Claim Petition | Submit to the Bureau with documentation | Include medical records, proof of employment |
| UEGF Investigation | Fund verifies uninsured status | Fund begins processing benefits |
Can You Sue Your Employer If They Don’t Have Workers’ Comp Insurance?
Yes. When an employer fails to carry workers’ compensation insurance, you can file a personal injury lawsuit against them in civil court. This is a major exception to the exclusive remedy rule, which normally prevents workers from suing their employers. Because the employer violated Pennsylvania law by not maintaining coverage, you are no longer limited to workers’ compensation benefits.
A civil lawsuit allows you to seek damages that workers’ compensation does not cover, including:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Full lost wages without the two-thirds cap that workers’ comp imposes
- Punitive damages (if the employer’s conduct was particularly reckless or intentional)
To succeed in a civil lawsuit, you must prove that your employer was legally responsible, typically by showing they were negligent, such as by failing to provide a safe work environment. An experienced attorney can investigate the circumstances of your injury, gather evidence, and build a strong case to hold your employer accountable.
Courts in Lawrence County, including the Lawrence County Court of Common Pleas at 430 Court Street in New Castle, handle these civil lawsuits. Workers injured at businesses throughout New Castle, Ellwood City, and Western Pennsylvania can pursue these claims when employers fail to follow the law.
Key Takeaway: You can sue an uninsured employer in civil court for pain and suffering, emotional distress, and full damages. This is an exception to the exclusive remedy rule that normally prevents lawsuits against employers.
What Penalties Do Uninsured Employers Face in Pennsylvania?
Employers who fail to carry workers’ compensation insurance face severe civil and criminal penalties. Under Pennsylvania law, operating without required coverage is both a violation of state regulations and a criminal offense. The Pennsylvania Department of Labor & Industry and the Bureau of Workers’ Compensation enforce these penalties to protect workers and ensure compliance.
Civil Penalties and Financial Liability
Uninsured employers must reimburse the UEGF for all benefits paid to injured workers, plus interest and penalties. The UEGF charges interest on unpaid balances at a rate set by Pennsylvania law. This interest accrues from the date benefits are first paid and continues until the employer fully reimburses the fund. Additional penalties are added on top of the principal and interest, significantly increasing the total amount owed.
The fund can also impose fines based on the employer’s payroll and the length of time the company operated without coverage. These costs can quickly escalate into tens or hundreds of thousands of dollars.
In addition to UEGF reimbursement, employers face stop-work orders that shut down their business until they obtain proper insurance. The Bureau of Workers’ Compensation can also place liens on business assets to recover unpaid costs. These financial consequences can destroy a company’s ability to operate.
Employers who fail to reimburse the UEGF face civil lawsuits and possible contempt of court charges if they ignore court orders to pay. The fund works with the Pennsylvania Attorney General’s Office to enforce payment and hold employers accountable. In many cases, employers who cannot pay face bankruptcy or business closure.
Criminal Charges
Operating without workers’ compensation insurance is a criminal offense in Pennsylvania. Employers can face up to one year in prison and fines of up to $2,500 for each day they operate without coverage. Repeat offenders or those who intentionally avoid insurance face enhanced penalties, including felony charges in extreme cases.
Law enforcement agencies throughout Pennsylvania, including prosecutors in Lawrence County, take these violations seriously. Criminal prosecution sends a clear message that worker safety is non-negotiable.
What Benefits Can You Recover Through the Uninsured Employers Guaranty Fund?
The UEGF provides comprehensive benefits for workplace injuries, though the process may take longer due to the need to verify the employer’s lack of coverage and investigate the claim.
- Medical Benefits: The UEGF covers all reasonable and necessary treatment related to your workplace injury, including hospital care, surgeries, prescription medications, physical therapy, and ongoing treatment until you reach maximum medical improvement. The UEGF pays these costs directly to healthcare providers, so you do not have to pay out of pocket.
- Wage Replacement Benefits: You receive two-thirds of your average weekly wage, subject to the state’s maximum weekly benefit cap. These benefits continue until you can return to work or reach maximum medical improvement, whichever comes first.
- Disability Benefits: If your injury causes permanent disability, you may receive additional benefits based on the severity of your impairment. Total disability benefits continue for life or until you recover, while partial disability benefits are based on the percentage of your earning capacity lost. The UEGF calculates these benefits using the same formulas as private insurance carriers.
Key Takeaway: The UEGF provides the same medical benefits, wage replacement, and disability benefits as standard workers’ compensation. However, processing may take longer due to the need to verify the employer’s uninsured status.
Workers’ Compensation Attorney in Western Pennsylvania – Luxenberg Garbett Kelly & George P.C.
Lawrence M. Kelly, Esq.
Lawrence M. Kelly, Esq., is a partner at Luxenberg Garbett Kelly & George P.C. and a Board-Certified Civil Trial Specialist by the National Board of Trial Advocacy. He has been selected to the Pennsylvania Super Lawyers list for 19 consecutive years and named to the Top 50 Pittsburgh Super Lawyers list for six consecutive years. His extensive trial experience includes representing injured workers in workers’ compensation claims and personal injury lawsuits throughout Western Pennsylvania.
Mr. Kelly is recognized by Martindale-Hubbell with an AV Preeminent rating, the highest peer-review rating for legal ability and ethics. He was also selected as one of the Top 100 Trial Lawyers by the American Trial Lawyers Association and among the Top 10 Personal Injury Attorneys in Pennsylvania by Attorney and Practice Magazine. Clients value his dedication to achieving results and his ability to hold employers and insurance companies accountable under Pennsylvania law.
Joseph A. George
Joseph A. George, Esq., is a partner at Luxenberg Garbett Kelly & George P.C. who concentrates on workers’ compensation matters, motor vehicle accidents, medical malpractice, and personal injury claims. He has been named to Pennsylvania Super Lawyers from 2018 through 2025 and holds an AV Preeminent rating from Martindale-Hubbell, the highest peer-review rating for professional excellence and ethical standards. Mr. George is a member of the Pennsylvania Bar Association, Pennsylvania Association for Justice, Western Pennsylvania Trial Lawyers Association, American Bar Association, and the American Association for Justice.
Mr. George has received national recognition as The National Trial Lawyers Top 100 and was named to the Nation’s Top One Percent by The National Association of Distinguished Counsel. In 2024, he was elevated to Fellow of the American Bar Foundation, an honorary society recognizing lawyers who exemplify professional excellence and commitment to public service. Clients appreciate his thorough approach to case preparation and his commitment to protecting the rights of injured workers throughout Pennsylvania.
What Should You Do Immediately After a Workplace Injury at an Uninsured Company?
If you are injured at work and suspect your employer does not have insurance, take immediate action to protect your rights:
- Seek medical attention even if your injuries seem minor. Prompt treatment creates a medical record linking your injuries to the workplace accident and ensures you receive necessary care.
- Report the injury to your employer as soon as possible. Put your report in writing and keep a copy for your records. If your employer refuses to acknowledge the injury or provide documentation, document the conversation with notes, including the date, time, and who you spoke with.
- Verify your employer’s insurance status with the Pennsylvania Bureau of Workers’ Compensation. You can reach the Bureau by phone or check their online database.
- Gather evidence of your employment and injury, including pay stubs, medical records, and witness statements.
- Consult a workers’ compensation attorney who can guide you through the UEGF claim process or help you file a civil lawsuit. An attorney can investigate your employer’s coverage, ensure you meet all deadlines, and advocate for your rights at every step.
Can You Receive Both UEGF Benefits and Sue Your Employer?
In most cases, you must choose between filing a UEGF claim or pursuing a civil lawsuit. However, the two options serve different purposes and provide different types of compensation. The UEGF claim ensures you receive medical treatment and wage replacement immediately, while a lawsuit allows you to recover damages for pain, suffering, and other losses not covered by workers’ compensation.
In some situations, injured workers may file a UEGF claim for immediate benefits and later explore whether a lawsuit is available. If you recover damages in a lawsuit, the UEGF may place a lien on your settlement or verdict to recover the benefits it already paid. This prevents double recovery but ensures you receive full compensation for all losses.
An experienced attorney can help you decide which path makes sense for your situation. Factors to consider include the severity of your injuries, the employer’s ability to pay a judgment, and how quickly you need financial support. In some cases, pursuing both options simultaneously maximizes your total recovery.
Get Help from a Pennsylvania Workers’ Compensation Attorney
Workplace injuries are stressful, and discovering your employer has no insurance makes a bad situation worse. You deserve medical care, wage replacement, and accountability for the employer who ignored Pennsylvania law. Whether you need to file a UEGF claim or pursue a lawsuit, experienced legal representation can make all the difference.
Lawrence M. Kelly and the legal team at Luxenberg Garbett Kelly & George P.C. have helped injured workers throughout New Castle, Lawrence County, and Western Pennsylvania for decades. Our workers’ compensation lawyers handle claims at the Pennsylvania Bureau of Workers’ Compensation and represent clients in courtrooms across the region, including the Lawrence County Court of Common Pleas. We fight to ensure uninsured employers face consequences and our clients receive full compensation.
Call Luxenberg Garbett Kelly & George P.C. today at (724) 658-8535 for a free consultation. Our offices serve families and workers in New Castle, Ellwood City, Butler, Cranberry Township, Beaver Falls, Pittsburgh, and throughout Lawrence County, Butler County, Beaver County, and Allegheny County. We will review your situation, explain your legal options, and help you pursue the benefits you deserve
