As an Employer, do I have to provide Workers' Compensation?

With the exception of public employers and employers of domestic workers, New Jersey law requires that employers operating in the state provide for the payment of Workers' Compensation benefits through an insurance policy or an approved plan of self-insurance.

If your business is a Corporation, Workers' Comp is required coverage and includes owners and partners as well as employees.  If your business is a Partnership or is not incorporated, you may elect to purchase Workers' Comp for any owners or partners; if you have any employees (part-time or full-time), you must have coverage for them.

Proof of coverage should be displayed in a prominent location at the place of business.

Does the Employer have a choice of carriers?

Most of our voluntary carriers will not write a stand-alone Workers' Compensation policy; they will only write a Workers' Comp policy for clients with existing commercial coverages.  For those not qualifying for our voluntary markets, we can place the Workers' Comp coverage with an assigned carrier in the New Jersey state insurance pool.  The Compensation Rating & Inspection Bureau ("CRIB") of the NJ Department of Banking & Insurance is responsible for rate setting matters for Workers' Compensation.

In general, Workers' Compensation provides replacement income, medical expenses, and vocational rehabilitation benefits.  An injured worker may also be eligible for life-long benefits or a lump sum payment if he/she is permanently injured while on the job.

Workers' Compensation laws are designed to protect employees who are hurt on the job.  Injured employees are provided with fixed monetary awards covered under Workers' Compensation, thereby eliminating the need for excessive litigation.

What if my employee is injured off-site?

In many cases, an employee may qualify for Workers' Compensation benefits if he/she is hurt away from the job site, as long as the injury is work related, i.e. occurring on work-related business, while doing a work-related errand, or attending a work-related event or function.

How are Claims filed?

An injured employee should notify his/her employer as soon as possible.  Notice may be given to the foreman, supervisor, personnel office or anyone in authority at the employer's place of business.  Notice does not have to be in writing.  The employer's Workers' Compensation insurance carrier (or the employer, if self-insured) will investigate the claim and determine eligibility to receive benefits.  Claims must be filed in a timely manner, usually within 3 weeks of the injury. 

What about Occupational Illness cases?

In cases of occupational illness - examples include lead poisoning, asbestosis and hearing loss - there is a two year statute of limitations that applies to Workers' Comp cases.  Please note that the filing of an application for an informal hearing does not stop the two-year statute of limitations from running.