What is Workers Compensation Insurance?
Each year, tens of thousands of employees suffer work-related illnesses and injuries. Many need to be hospitalized, and some injuries and illnesses even prove to be fatal. When an employee becomes injured or sick because of their job, their employer is usually responsible for any medical costs and lost wages associated with the injury or illness. Workers compensation insurance helps businesses in New Jersey better protect themselves against these potential costs.
Workers comp insurance provides protection against liabilities that businesses would face if one of their employees had a work-related injury or illness. Most policies help provide coverage for injured or sick employees’ medical expenses and lost wages.
What New Jersey Businesses Need Workers Comp Insurance?
Almost all businesses in New Jersey must either have workers compensation insurance or be approved by the state to self-insure if they have at least one employee and aren’t covered under a comparable federal program. Because self-insuring requires a sizeable amount of capital and an ability to prove a business’ permanence, most businesses purchase a workers comp policy.