The state of New Jersey passed its workers' compensation statute in 1911, requiring all companies to have coverage. Workers' compensation insurance benefits your employees for accidents or illnesses sustained on the job. This protection is sometimes known as workers' comp or workman's comp.
Get an estimate for workers' compensation insurance today and see how it can help your employees return to work sooner.
If an employee has a work-related injury or sickness in New Jersey, workers' compensation can help cover:
When determining workers' compensation premiums, insurance companies evaluate a variety of criteria. You can use this simplified formula to get the components of workers' compensation costs:
Class Code Rate X Class Experience Modifier X (Payroll/$100) = Workers’ Compensation Insurance Premium
Classification codes, often known as workers' compensation class codes, reflect the nature of the work performed by your employees. They vary according to the level of risk.
Payroll is multiplied by a rate that corresponds to the class code. Each class code has a per-$100 cost.
The experience modification number reflects your claims history over the previous five years. A claim-free history can result in cheaper insurance premiums. Note that experience modification numbers are subject to state limitations and are not applicable to all policies.
Whether you own a business, have a family member working in a hazardous field, or are concerned about your own safety in the workplace, it is essential to recognize the risks that exist. Consider the prevalence of workplace accidents and take measures to lessen their probability.
In addition, if you are suffering consequences as a result of a work-related accident, you should investigate the choices available to aid in your recovery. For instance, workers' compensation assists numerous wounded workers in resuming normal everyday activities.
The Bureau of Labor Statistics reported that private industry employers in New Jersey recorded 75,800 nonfatal occupational injuries and illnesses in 2020, resulting in an incidence rate of 2.9% per 100 full-time equivalent workers. Chief Regional Economist Martin Kohli stated that New Jersey was one of 31 states and the District of Columbia with a significantly different incidence rate of total recordable cases (TRC) than the national average of 2.7%.
The 2020 New Jersey Survey of Occupational Injuries and Illnesses reveals the following:
Here are some frequently asked questions regarding workers’ compensation in New Jersey:
In New Jersey, you can remain on workers' compensation provided that: Temporary total disability benefits are limited to 400 weeks. Permanent total disability is conceivably for life, while permanent partial disability is a maximum of 600 weeks, based on the severity of the injury.
All companies operating in New Jersey are required to have workers' compensation insurance or be approved for self-insurance if one or more individuals, including corporate executives, perform services for the corporation for prior, current, or projected compensation.
Luckily, workers' compensation benefits are not subject to taxation. Neither the New Jersey Division of Taxation nor the Internal Revenue Service (IRS) taxes workers' compensation, either for medical or disability benefits.
Check out the importance of worker’s compensation here at Assured Standard!