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Insurance Blog

Workers Compensation Myths Revealed

O’Donnell Agency LLC offers multiple types of coverage. For over 50 years, we have helped New Jersey residents find the coverage they need to navigate life’s risks. We are committed to helping our clients protect themselves, as well as their loved ones. We are confident that we can help alleviate some of your stress by giving you a safety net when an emergency arises.

Workers Compensation Myths Revealed

Many successful New Jersey businesses rely on their employees to provide excellent service. Sometimes issues may arise in the workplace that could put the entire business in jeopardy. Workers comp insurance protects employees while they are on the job. If you are injured on the job, workers comp covers your medical treatment and rehab. You are also covered in the event that you become disabled. Your employer is obligated to carry workers comp coverage. While researching the policy, pay attention to these common workers comp insurance myths.

I’m An Independent Contract So I’m Not Covered

This is incorrect. If you perform tasks for a business as an independent contractor, they are still obligated to cover you through a workers comp policy. If you are injured on the job, you can pursue legal action against the business if they don’t have the proper coverage.

I’m Not Covered Because I Was At Fault

Regardless of whether you accidentally hurt yourself or not, you are still covered through workers comp coverage. The only exception is if the incident occurred because you were drunk or had drugs in your system.

Workers Comp Insurance Isn’t Necessary For A Small Workforce

If you are a business owner with employees, you are required to carry worker’s comp insurance regardless of how many employees you have.

O’Donnell Agency LLC Will Help You Protect Your Assets

Visit our website to learn more information about workers comp insurance.  

What Does Workers Compensation Insurance Cover?

As a business owner in New Jersey, the moment you hire your first employee, you take on some form of risk as anything can happen to them while at work. That is why you need workers’ compensation insurance that protects you and your employees as well.  To understand more about this form of commercial insurance, O’Donnell Agency LLC explains what it covers.

Medical Expenses

Workers’ compensation insurance helps cover employees’ medical bills resulting from a work-related injury or illness. This can include a visit to the hospital, surgery, and prescribed drugs. For example, if your plumber falls and twists his ankle, workers’ compensation insurance will help pay for their visit to the emergency room.

Missed Wages

After a work-related injury or illness where your employee needs to take some time off to recover, workers’ compensation insurance can help replace that lost income. If one of your roofers slips and falls and cannot come to work for a week or two, this type of insurance will help cover those lost wages.

Ongoing Care

At times, a work-related injury or illness can be so severe that one of your workers will need ongoing care like physical therapy or follow-up treatment. Workers’ compensation can help cover the cost of continuing care.

Funeral Expenses

In extreme cases, an employee may lose their life due to a work-related accident. In such circumstances, workers’ compensation insurance helps cover the funeral costs as well as provide death benefits for the beneficiaries of the deceased.

Illnesses

There are working conditions that can expose some employees to dangerous chemicals that can cause an illness. If one of your employees gets sick and requires treatment and ongoing care, this form of commercial insurance helps cover those expenses.

It is essential that business owners in New Jersey find the right insurance company to work with. If you are shopping for commercial insurance, you can contact us at O’Donnell Agency LLC. Our agents are ready to help ensure that your business and your employees are covered if you are exposed to risks.

When Does the Law Require Workers’ Compensation?

The Bureau of Labor Statistics reported that the private industry had 2.9 million nonfatal injuries in 2019. Cases of workplace injuries are not new. As an employer, the law requires you to ensure that your workers operate in a safe environment. 

Regardless of the safety measures that you have put in place, accidents can still happen. It would help to get workers’ compensation insurance. If you’re in New Jersey, O’Donnell Agency LLC can help you with your workers’ compensation insurance. 

When to Buy Workers’ Compensation Insurance 

Most states require companies to have workers’ compensation depending on the number of employees. Workers’ compensation is a great way to protect your business from financial losses and reputational damage. It’s vital to understand when to buy workers’ compensation, whether your company is well-established or an upstart. 

You need to get the coverage as soon as you hire your first employee. If any of your workers got an injury in the workplace, you wouldn’t be held financially responsible if there’s an insurance policy in place. It is best to comply with laws relating to workers’ compensation insurance to prevent cases of criminal or civil penalties. 

Workers’ Compensation Insurance in New Jersey

In New Jersey, the law requires businesses to have workers’ compensation insurance. Some employers under federal programs or those in partnerships get some exceptions. Those without employees also don’t have an obligation to get this kind of insurance. 

The insurance should also cover part-time employees if they are paid wages and taxed. However, the coverage doesn’t apply to volunteers, interns, and contractors. Business owners must understand workers’ compensation insurance and cases where it applies. 

Workers’ compensation insurance can be a challenging concept, especially for new business owners. For businesses in New Jersey, check out O’Donnell Agency LLC to know more about this coverage. The team will guide you on workers’ compensation per the law.  

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