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Distinguishing Between NJ Workers’ Comp and Disability Benefits

Distinguishing Between NJ Workers’ Comp and Disability BenefitsDistinguishing Between NJ Workers’ Comp and Disability Benefits

When your client has an employee who is hurt or otherwise too injured to perform the duties of their job, they most likely will be entitled to a few different types of financial support. This may be in the form of state disability benefits, Social Security Disability Insurance (SSDI), or of course, NJ Workers’ Compensation. One of the most important things about NJ Workers’ Compensation that your clients need to understand is how these benefits differ from disability payments.

NJ Workers’ Compensation benefits are given to an employee when they are injured at work, as an alternative to litigation. State disability benefits, however, provide the employee with weekly benefits if they are injured away from work but can’t work at their normal or customary job. The key factory distinguishing NJ Workers’ Comp from Disability Benefits is the fact that Workers’ Comp covers the employee for injuries for which your client would typically be held liable. For example, their employee may be an office worker who suffers from carpal tunnel syndrome.

If state disability benefits are higher than the NJ Workers’ Comp benefits after an injury, the employee may be entitled to those state disability benefits. The state disability benefits can also be provided to an employee while a dispute over whether the employee should receive workers’ compensation or not is resolved. Once resolved, if the employee is successful in their NJ Workers’ Comp case, the state will ask for its money back.

There are occasionally times when an industrially hurt worker can receive NJ Workers’ Comp benefits, but may also receive SSDI. The SSDI could be partially reduced by the employee’s receipt of workers’ comp or state disability benefits, unless they are a high-wage earner. These occurrences will vary on a case-by-case basis, depending on the injury, state of origin, and other factors.

At Associated Specialty Insurance Agency (ASIA), we understand that NJ Workers’ Compensation Benefits is a front-and-center issue for employers, the insurance distribution system, Comp boards, and state legislatures. For more information about the Workers’ Compensation products we offer and the Targeted Classes we serve, please contact us today at (866) 679-7457.

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