Employers of all industries and sizes must prioritize and protect their workers’ health, safety and wellness. Even businesses that establish safe work environments and implement optimal safety measures may not be able to prevent all incidents. If your employees are injured or develop an illness due to a workplace event, workers’ compensation insurance can provide critical financial assistance for both their recovery and your company’s management of the aftermath.
When Do I Need Workers’ Compensation Insurance?
For most employers, workers’ compensation insurance is a necessary component of an adequate insurance portfolio. In addition to providing businesses and employees with essential financial assistance following workplace illnesses and injuries, workers’ compensation coverage is also legally required for most New Jersey employers.
Specifically, workers’ compensation insurance can help pay for the following:
- Healthcare costs—If an employee is injured or develops a work-related illness that requires medical services, your insurance can help pay for their bills.
- Lost income—If a workplace injury or illness hinders your employee’s ability to conduct their regular duties, this coverage can help them recoup any missed or reduced wages.
- Disability benefits—This coverage can help provide benefits for workers if they develop a disability due to a workplace injury or illness.
- Death benefits—If a workplace illness or injury results in a fatality, your workers’ compensation policy may help provide financial assistance to affected employees’ families, such as for funeral expenses or to replace the lost income.
- Legal costs—If your business is sued following a workplace illness or injury, your insurance may be able to render financial aid for various legal expenses, including your defense, court fees, settlements and judgments.
How Much Does Workers’ Compensation Cost?
Like most types of insurance, the cost of an adequate workers’ compensation policy may vary significantly among employers. Providers must consider your business’s specific operations and any unique circumstances before being able to provide you with an accurate quote. In most cases, this process will include an analysis of the following criteria:
- Location—The exact details of workers’ compensation insurance laws may vary between states and influence your premiums.
- Workforce size/payroll—As a general rule, companies with larger workforces and higher total payrolls can expect to be quoted higher prices for sufficient coverage.
- Classification codes—These codes refer to the tasks and type of work conducted by your employees. Employers with many workers involved in high-risk duties may have to pay more.
- Experience modification number—These figures refer to how risky insurance companies deem your business based on recent claims history and relative to other employers in your industry. An experience modification rate (EMR) below 1.0 means lower assessed risk levels and can generally lead to savings. Conversely, an EMR above 1.0 could mean higher premiums.
Get the Right Coverage
The workers’ compensation experts at Insurance Agencies Inc. have over 140 years of experience helping businesses in Northfield, Berlin and Brigantine acquire the right coverage. We will work with you to ensure that you are compliant with all applicable laws before building an optimal policy.
Visit our website or call 609-646-1000 to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.