Workers’ Compensation

Workers’ compensation insurance is an integral part of managing your business. You are required under state law to carry workers’ compensation coverage when you are not covered by federal programs (the Defense Base Act, Longshore and Harbor Workers Act, Outer Continental Shelf Act, etc.) Additionally, the State of New Jersey maintains a hotline for reporting uninsured businesses. You can’t fly under the radar, and your employees deserve to know that they are covered when they come to work.

Read further to learn how workers’ comp functions, how to purchase this type of insurance, and how your employees can take advantage of this type of protection.

What is Workers’ Compensation and How Does it Work?

Workers’ compensation can be a form of self insurance (if you’re approved to self-insure your business,) or it is a policy purchased through a preferred carrier. When you carry workers’ compensation coverage, your employees are protected in the event of a work-related injury or illness.

Generally, workers’ compensation claims start at the moment an incident occurs. The injured employee should report the incident to their supervisor who will help initiate a claim. (Depending on how your business is structured, you may contact the insurance company, or you might employ a bookkeeper, accountant, or insurance professional to help.)

Your injured or ill employee can visit one of several “in-network” doctors, and the workers’ comp policy pays for their medical care. In addition, workers’ comp pays for lost wages—up to a certain point—and long-term disability.

What Are the Three Types of Workers’ Compensation Insurance?

Generally, there are three types of workers’ compensation coverage that you or your employees might need. You need this insurance because it covers work-related:

  • Medical expenses
  • Disability
  • Death

The medical expenses—as mentioned above—are handled and treated by an in-network doctor (a list of which you should post prominently in your workspace.)

Disability coverage provides long-term payments to your employees for lost wages. The state of New Jersey uses a rubric to explain how much the injured employee should be covered, and provides 70% of their salary—given weekly minimums and maximums.

If you aren’t sure how much is covered, sit down with an agent to discuss how much your employees will receive under your workers’ comp coverage because the state adjusts these numbers every year.

Sadly, workplace deaths occur from time to time, and they are often quite unpredictable. Workers’ compensation covers workplace deaths, including:

  • Transportation accidents
  • Falls
  • Intentional injury
  • Contact with an object
  • Substance or toxin exposure
  • Fires and explosions

Death benefits pay the family 70% of the deceased’s weekly wages, with a portion going to the minor children until they turn 18. Special provisions are made for full-time students up to age 23. If the child is disabled, they may receive further benefits.

Contact Us for Help With Your Workers’ Comp Coverage

Our team of Business Insurance professionals can provide your company with complete programs that include, property and casualty insurance, workers compensation, employee benefits, executive protection, surety bonding, and more. The different features of your insurance needs are handled by experienced specialists trained to provide you with the exact type and amount of protection that is right for you and your company.

For more information, contact: Dan Borgna at 973-437-9664 or danb@dalegroup.com.