What is a workers’ compensation insurance?

Millions of workers are injured in the workplace or in the course of their employment every year. Work-related accidents may result in injuries and missed days from work. Sometimes the injury is so severe that the injured employee is unable to return to work. Some job-related accidents have even resulted in the death of the worker. The injured employee or the deceased worker’s survivors may seek compensation for the injuries, lost wages, or death arising from the accident. In New Jersey, worker’s compensation is the exclusive remedy benefits for a workplace accident.

Benefits for injuries and lost wages are paid from the employer’s worker’s compensation insurance coverage. Workers’ compensation is a no-fault insurance that covers employees when they have a work-related injury or illness. New Jersey law requires employees to have workers’ compensation insurance through an insurance company, a state-run workers’ compensation insurance provider, or by self-insurance approved by the state. If an employer fails to maintain workers’ compensation insurance, it may face penalties set by state law.