Workers’ compensation—a quick briefing

Workers’ compensation (also known as “workers’ comp”) is insurance that offers compensation to employees who suffer from a job-related illness or injury. It’s the law in New Jersey that most employers must have workers’ comp.

Here’s a quick briefing on workers’ compensation insurance.

It’s the law

Workers’ compensation is mandatory in most states, including New Jersey so it’s something you have to have. Failure to provide evidence of workers’ comp can open you up to large fines from the state and even legal action to stop your business operating.

What employees get

Here’s an overview of the different benefits an employee receives under a typical workers’ compensation plan.

Medical benefits: Coverage includes medically necessary services such as hospital visits, medical treatment and prescriptions.

Temporary wage replacement: If a worker is disabled for over 7 days, he or she is eligible for benefits that are retroactive to the first day of the loss. These benefits pay 70 % of the employee’s wages for the week.

Permanent wage replacement: When an injury prevents an employee from returning to work they may receive up to 70% of their weekly wage for up to 450 weeks, after which time eligibility will be reassessed.

Death benefits: Dependents of an employee that passes from an injury or illness at work may receive benefits to cover funeral expenses up to $3,500 and death benefits that are up to 70% of the deceased worker’s pay.

What employers get

Because workers are guaranteed coverage through workers’ compensation, they are not usually able to bring a civil liability suit against their employer for their suffering or pain and other damages. This provision may not hold up if the employer has shown negligence that put the employee at unnecessary risk.

There are many options for the coverage you select and how to pay for it. As with many insurance products, your best bet is to speak to an experienced agent.

John B Wright’s agents have years of experience with many types of business insurance in New Jersey. Contact them here if you have any questions.