Mahwah, N.J., Nov. 30 /PRNewswire/ -- New Jersey-based insurance broker Capacity Coverage is warning businesses to avoid a costly workers compensation mistake. Many businesses don't realize there are "monopolistic states" where the state controls all Workers Compensation insurance -- Wyoming, North

A company employee may be injured on the job while working in a different state than where your business is based. If that happens, the employee may be able to collect Workers Compensation based on the laws of the state where the injury happened. It doesn't matter whether it is a salesperson on the road, a driver making a delivery, or an executive meeting with a client.

"We have found many businesses are not aware if their employees work out of state, the business may need a Workers Compensation policy with 'Other States' coverage. This is of particular concern in the transportation industry where drivers frequently work in many states as they do deliveries across the country," says Capacity Coverage Company of New Jersey COO Carl A. Gerson.

Companies that don't have "Other States" coverage may be financially responsible for paying the costs of the employee's injury based on the laws of the state where the injury occurred. Or, the company may have to pay the difference between its home state's benefits and the benefits of the state where the injury occurred. That could be for months or even years. Plus, some states will fine companies for lacking coverage.

Capacity also often suggests employers obtain Employers Liability insurance to cover claims due to employer negligence. Adding a "Stop Gap Endorsement" extends the Employers Liability Coverage to the five monopolistic states. In some cases, the Stop Gap must be added to a General Liability policy.

"Other States Coverage and the Stop Gap Endorsement are available from most insurance companies and are relatively inexpensive when compared to the impact of not having them," says managing partner Louis Hefter of Capacity Coverage's Ross & Co. division.

Headquartered in Mahwah, Capacity Coverage Company of New Jersey, Inc. is one of the largest privately held brokerage firms in New Jersey. It is ranked the 61st largest insurance broker in the US by Business Insurance Magazine."

CONTACT: Carl A. Gerson of Capacity Coverage Company of New Jersey, Inc., +1-201-661-2400, or cgerson@capcoverage.com