Is Your Employer Required to Have Workers’ Compensation Insurance?

Employers and Workers’ Compensation Insurance

In the aftermath of a workplace injury, one of your first steps will be to file a workers’ compensation claim. Under New Jersey law, all employers must provide benefits to anyone who has been hurt in a job-related injury. Most employers choose to meet this requirement by purchasing a policy of workers’ compensation insurance. Premiums are based on the type of jobs insured, as well as the frequency of claims filed under the policy. Accordingly, there’s an incentive for employers to minimize the number of claims paid. Contact a workers’ compensation lawyer if you were injured on the job.

But that’s not the only way to provide for workers’ compensation benefits. In lieu of a policy of insurance, an employer may choose to be “self-insured.” An employer can’t simply opt not to pay for workers’ compensation insurance and then claim self-insurance when a worker is injured. Under New Jersey law, if a company opts not to obtain workers’ compensation insurance, the employer must seek certification from the state of New Jersey to operate on a self-insured basis. To do this, the company must file a request with the Commissioner of the Department of Banking and Insurance, which will determine whether the company has sufficient resources to honor any potential claims. As a part of the process, the Commissioner may require that the company purchase and post a bond to cover potential claims.

There are significant penalties if an employer fails to obtain workers’ compensation insurance and does not seek certification as self-insured. If a worker is hurt and there’s no employer-provided coverage, substantial fines can be imposed.

Contact Our Office

If you or someone you love has suffered needless injury because of the careless or negligent acts of another person, our workers’ compensation lawyer can help protect your rights. For a private meeting with experienced personal injury attorneys, contact us online or call our offices, in New Brunswick at 732-247-3600 or in Somerville at 908-448-2560.