Construction work has always come with inherent risks — falls, equipment accidents, and structural hazards. But one of the most insidious threats, often invisible and long-latent, is asbestos exposure. For thousands of construction workers, exposure to asbestos has led to life-altering illnesses like mesothelioma, lung cancer, and asbestosis.
To offer financial relief to affected individuals, asbestos trust funds were established. These trust funds serve as compensation reservoirs for victims who can no longer sue defunct asbestos manufacturers. This article explores the eligibility, application process, payout expectations, and strategic legal tips for construction workers seeking compensation from these trust funds.
What Are Asbestos Trust Funds?
Asbestos trust funds (also known as asbestos bankruptcy trusts) were created through U.S. Bankruptcy Code Section 524(g). When asbestos-producing companies declared bankruptcy due to overwhelming litigation, the courts ordered them to set aside money in trust funds to compensate current and future victims.
As of 2024, more than 60 active asbestos trusts exist in the United States, with over $30 billion in assets (RAND Corporation, 2010).
Why Construction Workers Are at High Risk
Construction workers — especially those who handled insulation, drywall, roofing, flooring, or demolition — were often exposed to friable asbestos, the most dangerous form. Even brief or indirect contact with asbestos fibers can be hazardous, and symptoms may not manifest until 10 to 50 years later.
Common exposure scenarios include:
- Installing or removing insulation and pipe coverings
- Cutting asbestos-containing tiles, shingles, or boards
- Demolishing old structures built before the 1980s
- Sweeping or cleaning dust at job sites
According to the Occupational Safety and Health Administration (OSHA), over 1.3 million U.S. workers in construction and general industry are still potentially exposed to asbestos today (OSHA, 2023).
Diseases Covered by Asbestos Trust Funds
To be eligible for compensation, claimants must have a diagnosed asbestos-related illness, such as:
- Mesothelioma
- Asbestosis
- Lung cancer
- Colorectal cancer (with proven exposure)
- Pleural thickening or effusion
Each trust fund maintains its own list of qualifying diseases, so a construction worker may be eligible to file claims with multiple trusts.
How Asbestos Trust Funds Work
Here’s a step-by-step look at how these funds operate:
- Company Files for Bankruptcy: After facing mass lawsuits, the company files under Chapter 11 and proposes a reorganization plan with a trust fund.
- Court Approves the Fund: The court ensures the trust has sufficient funding to pay out both current and future claims.
- Trust Fund Guidelines Established: Each fund publishes criteria (called Trust Distribution Procedures or TDPs) that outline eligibility, required evidence, and payment percentages.
- Claims Reviewed and Paid: Victims submit claims to the appropriate trusts. Trust administrators evaluate and offer compensation if the claim is validated.
Eligibility Requirements for Construction Workers
To file a valid claim, a construction worker must generally provide:
- Medical records confirming a diagnosis of a covered disease
- Proof of asbestos exposure (e.g., employment history, witness affidavits, union records)
- Work site documentation linking the exposure to a bankrupt company’s products
- Claimant’s identity verification documents
A key advantage is that you don’t have to prove negligence — only exposure and illness.
How Much Compensation Can You Expect?
The amount paid varies significantly depending on the disease and the trust’s payment schedule. Here’s a rough estimate for base-level payouts (before adjustments):
| Disease | Typical Base Payout (Before Payment Percentage) |
|---|---|
| Mesothelioma | $30,000 – $1,000,000 |
| Lung Cancer | $10,000 – $150,000 |
| Asbestosis | $5,000 – $50,000 |
Note: Most trusts do not pay 100% of the scheduled value. They apply a “payment percentage” (often 10% to 30%) to ensure the trust remains solvent over time. So if a trust schedules $100,000 for mesothelioma and uses a 25% payment percentage, the actual payout would be $25,000.
Workers can file with multiple trusts for cumulative compensation.
Filing Multiple Trust Claims
One of the most strategic advantages is that a construction worker exposed to products from multiple bankrupt companies can file multiple claims simultaneously. For example:
- A worker may have used insulation from Johns Manville, drywall from Kaiser Gypsum, and roofing materials from Owens Corning.
- If all three companies have trust funds, the worker can file separate claims for each.
Experienced asbestos attorneys can help identify exposure sources and cross-reference them with bankrupt companies.
Time Limits: Statutes of Limitation
Each trust fund adheres to statutes of limitation based on:
- The state where the exposure occurred
- When the diagnosis was made
Generally, you must file within 2–3 years of the diagnosis. Some trusts may allow extensions for good cause, but it’s crucial not to delay.
How to File a Claim
1. Hire a Specialized Asbestos Attorney
Most asbestos lawyers operate on a contingency fee basis, meaning you don’t pay unless you receive compensation.
2. Gather Evidence
Compile medical records, employment history, site assignments, union records, and any available coworkers’ affidavits.
3. Determine Trust Eligibility
Attorneys use databases that cross-reference your work sites with companies covered by trust funds.
4. Submit Claims
Claims can be filed individually or through an expedited review, which pays faster but offers less room for negotiation.
5. Await Evaluation
Once submitted, trust administrators will review the case and determine the payout based on the evidence and trust payment schedule.
Why Legal Help Matters
Asbestos trust fund claims may seem straightforward, but nuances can lead to under-compensation or denial. Legal professionals can:
- Identify additional exposure sources
- Appeal denied claims
- Maximize compensation by seeking expedited and individual reviews
- Ensure compliance with complex procedural requirements
Many law firms also coordinate VA benefits, Social Security Disability, and personal injury lawsuits to create a broader financial safety net.
Frequently Asked Questions (FAQs)
Can I file even if the company I worked for no longer exists?
Yes. That’s the very reason trust funds were established — to ensure compensation for victims even if the responsible company is bankrupt or dissolved.
What if I’m already receiving workers’ compensation?
You can still file an asbestos trust claim. However, some trust payouts may be reduced based on other compensation received.
Are surviving family members eligible?
Yes. If a construction worker dies due to an asbestos-related illness, surviving spouses or children may file a wrongful death trust claim.
Conclusion: A Pathway to Justice and Relief
Construction workers are the backbone of American infrastructure, yet many paid a terrible price for unknowingly handling asbestos-laden materials. Asbestos trust funds offer a vital lifeline — not just for financial compensation, but also for acknowledgment and justice.
If you or a loved one were exposed to asbestos on construction sites and later developed an illness, explore your trust fund eligibility. With billions still available and legal help readily accessible, the path toward compensation is within reach.
References
- RAND Corporation. (2010). Asbestos Bankruptcy Trusts: An Overview of Trust Structure and Activity with Detailed Reports on the Largest Trusts. https://www.rand.org/pubs/monographs/MG1104.html
- Occupational Safety and Health Administration (OSHA). (2023). Asbestos. https://www.osha.gov/asbestos
- United States Government Accountability Office (GAO). (2011). Asbestos Injury Compensation: The Role and Administration of Asbestos Trusts. https://www.gao.gov/products/gao-11-819
- Environmental Protection Agency (EPA). (2022). Asbestos and Health Risks. https://www.epa.gov/asbestos
- Asbestos Disease Awareness Organization (ADAO). Construction Worker Risk Profile. https://www.asbestosdiseaseawareness.org
