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A Guide to Workers’ Compensation Laws in New Jersey

Are you a business owner that’s looking to cover all of your bases with insurance? Do you stay awake at night worrying that one of your workers will get injured on the job? If so, you need to invest in workers’ comp insurance right away.

Doing so will help protect you and your employees in the event of a workplace injury or illness. Millions of workers are hurt every year, so it’s unwise to assume you’ll never be in this situation.

See below for an in-depth article with more information on workers’ comp in the state of New Jersey, whether your business needs it, and so on.

What Is Workers’ Comp Insurance?

Perhaps you’re starting a new business for the first time. Maybe you’re unaware of what workers’ comp is and how it can help your company.

In its simplest definition, workers’ compensation is a form of insurance that provides coverage in the event of a workplace injury or illness. This can help both you and your employees from experiencing a major financial setback.

For example, let’s say that a member of your workforce breaks his ankle while he’s on the job. With an injury like that, he won’t be able to work until he’s fully recovered unless his job is mainly behind a desk.

With proper workers’ comp insurance in place, your worker can receive coverage on his hospital bills, loss of wages, cost of rehabilitation, and so forth.

Workers’ comp insurance protects you as the employer as well. You aren’t forced to pay for that worker’s recovery and loss of wages, thus protecting your company’s future.

The state of New Jersey is a no-fault state, meaning that the employee doesn’t have to prove you (the employer) are at fault for their injury/illness to receive coverage.

Am I Required to Have Workers’ Comp Insurance?

The quick answer is yes. As long as you employ people under your business model and have even one employee on your payroll, the state of New Jersey requires you to carry workers’ compensation coverage.

Many employers try to get around this by delegating their work to subcontractors and freelance workers, but even those fall under your umbrella at times. In fact, if a freelancer was injured on your site, they have reason to pursue compensation.

That said, the general New Jersey law requires employers to only carry workers’ comp insurance for their employees, so be sure to play it on a case-by-case basis.

By investing in workers’ compensation, your employees will receive coverage for temporary disability, permanent partial disability, permanent total disability, and even fatal accidents.

Permanent partial disability refers to situations in which a worker could be eligible to receive weekly benefits after their temporary disability or injury has recovered. This could be things like arms, fingers, feet, teeth, eyes, hands, and so forth.

Fatal benefits are used to protect the financial situation for the deceased person’s dependents, such as their spouse and children. They may be eligible to receive up to 65 or 70 percent of the deceased one’s salary.

Benefits of Workers’ Compensation

Even though the state of New Jersey requires you to carry workers’ comp insurance, it actually benefits you just as much as the injured or ill employee. See below for a list of benefits that you (as an employer) will receive from having workers’ comp insurance.

1. Peace of Mind

Every year, millions of companies have their worst fears brought to life when a workplace accident occurs. Those accidents can lead to minor or severe injuries, illnesses, or in extreme cases: death.

As an employer, that kind of risk can keep you up at night. Even companies with the most elaborate safety training programs are liable for an accident with the hustle and bustle of the modern corporate world.

When those severe situations happen, workers’ comp insurance is there to back you up, protecting the future of your company and your employee’s health.

2. Mends the Relationship With Your Staff

Even if the workplace accident isn’t your fault as the employer, a workplace injury can cause severe stress on the relationship between you and the injured worker.

Without workers’ comp insurance in place, your top-tier workers might build up spite because they did not receive compensation for the injury that they sustained.

With workers’ comp in place, you (the employer) can remove yourself from the situation. Your employee will attempt to settle with your workers’ comp provider, protecting your relationship with your staff and allowing them to come back to work once they’re fully recovered.

3. Monetary Relief

If workers’ comp insurance didn’t exist, it would leave the employer as the one responsible for covering the costs related to the accident.

That same thing can happen if you choose to ignore New Jersey workers’ compensation laws and not invest in coverage. Not to mention the fines and penalties that will be handed down to you by the state. Penalties you might not be able to recover from.

Investing in workers’ comp right away provides you the financial protection that you and your staff need in case of an emergency. Don’t neglect this opportunity.

Invest in Workers’ Comp Insurance for Your Company Today

Now that you have seen an in-depth guide on workers’ comp insurance in New Jersey and why it’s so important, be sure to invest in it for your company today.

Be sure to read this article on small business health insurance and open enrollment in NJ for those of you that are looking for health coverage as well.

For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.