For many New Jersey business owners, the differences between Workers’ Compensation and Insurance and Employment Practices Liability Insurance (EPLI) remain unclear and they wonder why their companies require both types of coverage. If you are confused about this matter, or simply on the market for the most cost-effective policies of each kind, now is the time to contact Blue Lion Insurance Advisors, LLP at (732) 649-1600 or online for a free consultation.
The Protection Workers’ Compensation Insurance Provides
Since its inception in 1916, Workers’ Compensation Insurance has been an integral factor in protecting both employees and employers in the U.S. It represents a practical solution to the problem of inevitable work-related injuries. Employees derive great benefits from Workers’ Compensation Insurance since it enables them to file for benefits whenever they suffer injury as a result of their work environment or work-related tasks.
Accidents, though more likely to occur at construction sites, factories, or manufacturing plants than in executive offices or retail stores, can happen anywhere. This is why all business owners and their workers must be protected from the enormous costs of medical services and lost income.
How does New Jersey Workers’ Comp Insurance Work?
All New Jersey businesses with employees, barring those whose workers are covered by federal programs, are required to carry Workers’ Compensation Insurance, though partnerships or limited liability companies (LLCs) may be self-insured.
It is important to be aware that Workers’ Comp:
- Is paid for through taxes paid by employers and deducted from each pay period
- Does not require employee contributions
- Has no deductibles
- Covers employees for injuries suffered while doing their jobs, regardless of fault
- Does not cover independent contractors, interns, or volunteers
- Covers lost income, medical treatment, ongoing care, disability leave, death benefits
- Does not cover pain and suffering
Along with its major benefits to employees, Workers’ Comp Insurance has a critical benefit to employers — employees give up their right to sue their employer for damages except in cases of extreme negligence, recklessness, or direct assault. This protects employers from being liable for exorbitant settlements and court costs.
Employment Practices Liability Insurance (EPLI)
Employment Practices Liability Insurance targets an entirely separate area of insurance claims in which the injuries suffered are emotional and psychological rather than physical. EPLI protects employers from lawsuits resulting not from bodily harm, but rather from discrimination.
Characteristics protected against discrimination by federal and New Jersey State law (LAD), include:
- Race/religion/skin color/national origin/ethnicity
- Physical or mental disability
- Gender/sexual orientation/gender identification
- Age
- Marital status
- AIDS or HIV status
- Genetic information
- Military status
Discrimination lawsuits may involve claims of harassment, wrongful termination, failure to employ or promote, wrongful discipline, invasion of privacy, false imprisonment, defamation, breach of contract, emotional distress, wage and hour law violations, and retaliation.
In other words, EPLI provides coverage for employers against all sorts of claims that Workers’ Comp Insurance does not. In addition, EPLI pays the costs not only of settlements or court-awarded damages but of legal fees as well. As you can imagine, such expenses are often enormous. It should be noted, however, that damages related to intentional or dishonest acts are not covered by EPLI.
Contact Our Experienced Insurance Advisors for Insightful Guidance
Because our highly capable insurance advisors do not work for any particular insurance company, they work in your best interests, always looking to provide you with the right insurance at the right price. We are skilled at risk assessment, well able to assist you in determining which coverage your company needs. Get in touch with us today. Our knowledgeable insurance advisors will help you acquire the insurance that will make your company Blue Lion Strong™. Call today.