Who Is Responsible for Workers’ Compensation Costs?
When you are injured at work, your finances, career, and overall health could suffer immensely. The repercussions could even extend to your family and loved ones. Fortunately, you can work with a Hudson County Workers’ Compensation Attorney to get compensated for your injuries or illness.
New Jersey has a workers’ compensation system aimed at helping you get back to work as soon as possible. It provides employees with medical treatment, rehabilitative care, and other forms of support. Although most people are aware of this system, few understand the source of the benefits.
In this article, we answer the question of who is responsible for workers’ compensation costs?
Workers’ Compensation Policies
In one way or another, workers’ compensation benefits are paid for by the employer. They can do this by making payments to an insurance company, paying premiums to a state-run insurance program, or making direct payments to workers.
1. Insurance Companies
In most states, employers are permitted to acquire a workers’ compensation insurance policy from private insurance companies. The companies insure businesses of all sizes and can have varying rates. If your employer is insured by a private insurance company, the insurer will send you your workers’ compensation benefits after an injury or illness.
2. State-Run Insurance Programs
Employers can also opt for a state-run workers’ compensation insurance program. These programs are usually run by the state’s department of commerce, labor, or industrial relations. They typically act like insurance companies where the employer pays premiums to the program and claims them when an employee is injured or falls ill.
If your employer is covered by a state-run program, the department administering the program pays your workers’ compensation benefits.
A self-insured employer has not taken up any insurance program and has instead chosen to insure themselves. In most states, self-insured employers are expected to prove that they have sufficient benefits to handle workers’ compensation benefits. They also have to submit to oversight by the state to ensure they are complying and paying injured workers.
Generally, a self-insured employer will hire a third-party administrator. This administrator will then be in charge of the following:
- Filling out workers’ compensation paperwork
- Overseeing the processing of claims
- Determining the amount owed to injured workers
- Managing workers’ compensation claims
- Sending benefits to eligible employees
A self-insured employer usually obtains the funds required for a worker’s benefits and sends them to the third-party administrator. This means they run the highest financial risk in terms of workers’ compensation. Consequently, they are more likely to dispute the eligibility of workers’ compensation claims.
In turn, it is always advisable to contact a Hudson County Workers Compensation Attorney if your employee is self-insured. An attorney will help ensure you get the maximum amount owed to you.
Talk to a Hudson County Workers Compensation Attorney
The company paying your workers’ compensation benefits may or may not be your employer. It could be an insurance company, your state government, or a third party employed by your employer to handle workers’ compensation.
Either way, the benefits you are entitled to remain the same regardless of who is responsible for workers’ compensation costs.
If you have any questions concerning your workers’ compensation benefits, contact the Law Offices of Anthony Carbone to speak to an expert Hudson County Workers Compensation Attorney.