Insurance is an inevitable expense associated with operating a business. And as long as risk exists, coverage must exist to offset the potential costs of accidents and incidents. Discover some of the reasons why all types of business – including small ones – need NJ workers comp insurance.
A Statutory Requirement for Businesses With Employees
In most states, it is a statutory requirement for businesses with employees to continuously maintain a workers compensation insurance policy. Businesses are legally mandated to have this insurance coverage. And failure to carry the proper insurance can result in serious penalties. It is more cost-effective to ensure the insurance is always active.
Avoid the Hassle of Expensive Lawsuits
An employee who gets injured during the course of doing his or her job expects compensation. And lawsuits can become costly and continue for years. A business needs to hire an attorney, filed paperwork, and make appearances at hearings. When a company has workers comp insurance, employees cannot sue the employer for injuries. The employer is part of a system that automatically pays for the damages and medical bills incurred during on-the-job injuries.
Work Injury Expenses
Work injury expenses can add up to thousands of dollars. If a company was forced to pay them out-of-pocket, it could put them out of business. NJ workers comp insurance can be used to pay for medical bills, and the cost of rehabilitative services, such as physical therapy. A death benefit might also be paid if a worker died and left loved ones behind.
Loss of Income
Many people live from paycheck to paycheck. Without the next paycheck, they might face serious issues paying for necessities such as housing and food. Fortunately, workers compensation also pays a portion of the employee’s lost wages. This can help someone get through this difficult time.
Contractual Requirements
Companies that rely on contracts from other businesses need to review the contractual requirements closely. The contract to do business may require the company has a certain workers compensation insurance policy. And other types of insurance might also be needed. Failure to have these insurance policies could mean losing the contract.
Consider Subcontractors
Companies know the employees on their payroll. But the situation can become confusing if a company hires contractors with subcontractors. If a subcontractor gets hurt and has no insurance, it could come back to the business that originally hired him or her. Always review contracts carefully to determine this level of liability and whether additional coverage is required.
High-Risk Industries and Low-Risk Jobs
It is easy to see why high-risk industries need insurance. If the job requires someone to be up on a roof several stories high or work with dangerous equipment, the likelihood of getting hurt increases. Insurance pays for the costs associated with such injuries. But low-risk jobs also have potential risks. For this reason, it is essential all types of companies invest in workers compensation coverage.
Keep Business Moving Forward
A major reason to get insurance is to keep business operations moving forward – regardless of what happens along the way. There will be inevitable accidents, injuries, and issues. But these problems remain solvable when you carry insurance that pays for the costs. Otherwise, a business might have to stop or interrupt its operations to take care of the costs.
To get NJ workers comp insurance, talk to a reputable local agent. A dedicated insurance agent will request an overview of your company and what it does to help you get the right types of insurance for your unique situation.
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