Workers Comp

Understanding Workers Compensation Insurance in New Jersey

Workers Compensation Insurance is a vital protection required by law in New Jersey for both employers and employees. It offers coverage in the event of a workplace injury or illness, ensuring that employees receive necessary medical care, wage replacement, and even disability or death benefits if needed. For employers, it shields the business from potential lawsuits filed by employees, preventing financial devastation. Navigating this complex insurance product requires the expertise of a licensed professional agency like ours to ensure compliance with the law and obtain the best coverage possible.

Pricing Workers Compensation Insurance: In New Jersey, Workers Compensation rates are set by the state. The state assigns class codes to different job types based on their level of risk. Each class code has a monetary base rate applied to every $100 of estimated gross payroll. Your premium is calculated by multiplying the base rates by the payroll amount. These class codes and base rates reflect the relative risks associated with each job, considering the likelihood of on-the-job accidents.

Understanding New Jersey Class Codes: Many employers have multiple classes of employees, and each is considered separately when calculating the cumulative premium. The New Jersey Compensation Rating and Inspection Bureau (CRIB) provides a helpful handbook, "How to Determine the Cost of a Workers Compensation Insurance Policy," which you can refer to for more information. There are over 550 class codes in New Jersey, and you can check how your employees might be classified by visiting the provided link (scroll down the page to access the codes).

The Audit Process: As an employer, you are required to undergo an annual audit of your staffing and payroll at the end of each policy year. The purpose of the audit is to ensure that you have paid the appropriate premium for the coverage you received. While it may sound daunting, the audit process is not as complicated as it seems and may even result in a refund of overpaid premiums from the previous year.

Trust Our Expertise: For over 30 years, we have been assisting small businesses in navigating Workers Compensation Insurance. Our knowledgeable experts are well-versed in the intricacies of the system and can ensure that you remain compliant with the law while being adequately covered in the event of an accident. Don't hesitate to reach out to us and let us guide you through the process, providing you with peace of mind and the assurance that your business and employees are protected.

Contact us today, and let our experienced professionals handle your Workers Compensation Insurance needs. We are here to help you maintain compliance, secure the appropriate coverage, and navigate the intricacies of the system with ease. Your peace of mind is our priority.