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Workers compensation |
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Workers’ compensation insurance is a valuable asset for employers
and employees. |
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If you think of workers’ comp as an expense, consider what it would cost to pay
for an injured worker without this protection. It also helps to reduce chances of
being sued for medical costs by an employee, and anything that reduces the chance
of lawsuits is a good thing. |
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What does workers’ comp insurance cover? |
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In the event that an employee is injured on the job, workers’ compensation coverage
provides payment for medical care, rehabilitation and a portion of wages if the
person is unable to work. If the worst situation happens and an employee dies while
performing his job, it provides a death benefit to a worker’s dependents.
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Workers’ compensation law requirements can vary from state to state. As a result
if you have employees who work in other states, you may have to purchase additional
workers’ compensation in another state to protect your business in the event that
a worker is injured outside the state your business is headquartered. In New Jersey,
it is mandatory for all private sector employers to purchase workers’ compensation
for each employee.
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Employment Practices Liability |
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Lawsuits for a variety of employment related claims are on the rise which can involve
current, former or potential employees. Employment practices insurance provides
your company, directors, officers and employees protection in the event of claims
related to sexual harassment, discrimination, unfair hiring practices, wrongful
termination, breach of contract and a variety of others. It can happen at any company.
It’s estimated that 3 out of 5 businesses will be sued at some point.
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Coverage is generally effective on the first day of employment. Workers’ compensation
is “no fault” insurance meaning blame for injury is generally not a factor in determining
coverage. In the event that an employee is unable to work, there is a 5 day waiting
period after which workers’ comp provides a portion of the person’s weekly income
a specified number of weeks for temporary or partial disability, and if a person
is permanently disabled it will provide a portion of wages on an ongoing basis. |
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Sole proprietor and partnership options of coverage
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If you are a sole proprietor or part of a partnership(LLC), you as the business
owner are not automatically included for coverage; however, you may choose to elect
coverage. Having this coverage can be important if you act as a subcontractor for
other companies because they usually expect you to carry your own workers’ compensation
protection.
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