Business Insurance

Business Insurance Workers’ Compensation Insurance For Small Business


Workers’ compensation insurance is usually required in most states and is required in New Jersey.  Also known as “workman’s comp,” it represents a compromise between employers and employees regarding employment related injuries or illnesses. Here’s how a workers’ compensation policy works:

Your employees relinquish their right to sue you if they suffer an on-the-job injury or illness. In return, you, the employer, agree to provide state-mandated benefits as a result of that on-the-job injury or illness.

To ensure employees have the money to pay these state-mandated benefits, most states require that employers demonstrate that they have the financial ability to pay any claims that may arise. Typically this financial ability is demonstrated through the purchase of workers’ compensation insurance. Laws regarding workers’ compensation insurance vary by state.

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Types of Workers’ Compensation Insurance

Most workers’ compensation insurance policies actually provide two types of coverage:

Workers’ Compensation Coverage

This type of insurance provides benefits for injured workers as required by state law regardless of who is at fault for the job-related injury or illness. In other words, whatever benefits your state requires, your workers’ compensation policy would provide.

Employers Liability Coverage

This additional coverage protects employers if they are sued for damages arising from employment-related accidents or diseases. However, to collect benefits provided by employers liability coverage, the employee, as well as anyone else not covered by workers’ compensation laws (i.e., spouses and dependents), would have to prove that the employer was legally responsible for the employee’s injury or disease.

InsureYourCompany.com offers all types of NJ business insurance through a variety of insurance carriers. Protect the other important assets in your company with group health insurance, general liability insurance, professional liability insurance, employee benefits, umbrella insurance, 401k retirement plans, and more.  We also specialize in technology insurance for IT professionals.

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