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New Jersey Workers' Comp Insurance
Protect your business and employees with New Jersey workers' compensation
Part of owning a business is prioritizing the safety and health of your employees. If you run a business in the Garden State, New Jersey workers' comp insurance offers financial and medical support to team members who suffer job-related injuries and illnesses. It also helps you manage liability and comply with state regulations.
Learn more about workers' compensation rules in New Jersey and let Progressive Commercial connect you with the right coverage.
Who needs workers' compensation insurance in New Jersey?
According to New Jersey workers' comp requirements, most companies need to have workers' comp insurance if they have at least one employee. This rule applies to all types of businesses and helps cover medical bills and lost wages related to a claim.
New Jersey workers' compensation insurance exemptions
There are some exemptions to New Jersey workers' compensation law, including:
- Sole proprietors with no employees
- Independent contractors with no employees
- Volunteers and unpaid interns
Opting out of workers' comp leaves employees unprotected if they're injured at work. Talk to a Progressive Commercial agent to get expert advice and determine what coverage is right for you.
What are the penalties for not having workers' comp in New Jersey?
Failing to have workers' comp insurance in New Jersey can result in financially significant penalties. You may be fined up to $5,000 for the first 10 days of non-compliance and an additional $5,000 for each 10-day period that follows.
These fines are enforced through liens against your business and can lead to the confiscation of your property.
How much does workers' comp cost in New Jersey?
Several factors determine New Jersey workers compensation rates, such as:
- Job classification code: The National Council on Compensation Insurance (NCCI) assigns specific class codes for jobs in New Jersey based on risk levels.
- Payroll: Workers' comp rates are calculated per $100 of your payroll. A higher payroll can mean a more expensive policy.
- Claims history: Your claims history impacts what you'll pay for workers' comp. A higher number of claims can increase your premiums.
- Insurance carrier: Insurance companies may charge different rates based on their own evaluations of risk and pricing policies.
How can you get workers' comp in New Jersey?
There are three ways to get New Jersey workers' comp insurance:
- Private insurers: Many businesses in New Jersey purchase workers' compensation insurance from private insurers. These providers can tailor coverage to meet your specific needs and may offer additional benefits and discounts. Speak with a Progressive Commercial agent to learn about your options.
- Self-insurance: You can apply for self-insurance for workers' comp through the New Jersey Department of Banking and Insurance. If approved, you might save on premiums by using your own funds to pay for claims. However, you'll need to handle all financial risks and administrative work yourself.
- Assigned risk pool: Some businesses can't get private coverage or self-insurance because they are new, high-risk, or have a history of many claims. In these cases, workers' compensation is available through the New Jersey Compensation Rating and Inspection Bureau (NJCRIB).
How does workers' comp work in New Jersey?
New Jersey workers' compensation insurance helps employees manage job-related injuries or illnesses. After an employee reports an incident, the employer submits a claim. If the claim is approved, the employee will start receiving financial support. The length of the support depends on the severity of the injury or illness.
New Jersey workers' comp benefits include:
- Medical expenses
- Disability benefits
- Lost wages
- Rehabilitation costs
Workers' comp protects businesses by helping injured employees return to work and providing financial support during their recovery. It also guards against fines or lawsuits since employees who accept these benefits usually can't take legal action.
New Jersey workers' comp death benefits
In New Jersey, workers' comp offers financial support to the spouse and dependents of an employee who has passed away. These benefits include:
- A lump-sum payment of up to $3,500 for funeral expenses
- Payments equal to 70% of the deceased workers' weekly wages
Review New Jersey's workers' compensation guide for more information about these and other state benefits.
New Jersey workers' compensation statute of limitations
The statute of limitations for filing a workers' comp claim in New Jersey is two years from the date of injury or diagnosis. However, it's important to encourage employees to report any on-the-job accidents as soon as possible to ensure their right to claim benefits.
Get a New Jersey workers' comp quote with Progressive Commercial
Protecting your business is easy when you purchase workers' comp insurance through Progressive Commercial. Our dedicated team is here to provide exceptional customer service and help you find the coverage that meets your needs.
Call us to talk to an agent or start an online quote today.
