New Jersey Workers' Compensation
What's the Law?
The New Jersey Workers' Compensation System covers all employees working for wages, except subcontractors and sole proprietors, against job-related injuries. Covered benefits are mandated by state law and cover—
- Lost wages
- Medical expenses
- Stated limits for the loss (or loss of use) of limbs, any of the five senses, or death
New Jersey is an elective state, which means that businesses are not actually required to carry Workers' Compensation coverage. However, the risks are great for employers and employees—
- Employers not carrying coverage forfeit their rights to common defenses
- Employees giving up their right to benefits forfeit their right to sue the employer
How can a business get Workers' Comp?
A business can offer workers' compensation benefits through—
- Private insurance with a private insurance company licensed in New Jersey
- Self Insurance by demonstrating a strong financial ability to pay claims
In either case, state law dictates policy terms, which are the same for all employers. And the costs of compensation must be paid by the employer, not the employee.
How are losses categorized?
Losses are grouped by the length and severity of the employee's disability—
- Temporary partial or total disability
- Permanent partial or total disability
- Death
- Occupational disease
To obtain adequate Workers' Compensation coverage for your business, call one of our brokers at 732.282.2700.