New Jersey law specifically requires that businesses carry workers compensation insurance. In addition to being required by law, a number of contractors, clients, customers, and partners will require a business to show proof of workers’ compensation before entering a contract or building a relationship. However, from an employee’s perspective the role of an insurance provider in workers’ compensation can be slightly mysterious.
Typical Workers’ Compensation Process from Employee Perspective
In most instances, when an employee is injured or falls ill at work he or she informs a manger or designated HR employee at the workplace. After this initial discussion and medical assessment of an injury, the process in New Jersey can progress without much interface with an injured employee. Unless there is dispute around the injury, employees likely have conversations with an HR manager and insurance representative, attend doctors’ visits, and within a short period of time begin receiving benefits.
Good employers will ensure that the steps to receive workers’ compensation benefits are seamless and smooth, which can leave an employee wondering why it is essential for their employer to carry this mandated insurance policy and what role the insurance company played in the process.
Why Workers’ Compensation Insurance Is Mandatory
Requiring that employers carry specific insurance for workers’ compensation ensures that employees are protected from legal or financial difficulties after an injury at work. It is the safeguard that an injured employee will receive adequate benefits. This is important because employees need a replacement income or partial replacement of …Read More