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    New Jersey Workers' Compensation

    New Jersey Workers' Compensation

    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.

    What Workers' Compensation Covers In New Jersey

    If an employee has a work-related injury or sickness in New Jersey, workers' compensation can help cover:

    • Medical care for the recovery of injured workers. Employers or insurance companies are permitted by New Jersey law to choose a healthcare provider for treatment
    • Lost wages if they are unable to return to work while recovering
    • Ongoing medical expenses, such as physical treatment or surgical procedures
    • Temporary total disability benefits if an employee is unable to work for longer than seven days
    • Benefits for permanent partial disability that depend on the kind and severity of the employee's injury. When an injured employee returns to work, they cannot always perform the same type or quantity of work
    • The employee is eligible for permanent total disability benefits if they have lost two significant body parts or cannot work at all
    • If an employee dies as a result of a work-related event, you provide death benefits, such as funeral fees

    Cost Of Workers' Compensation In New Jersey

    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.

    Workers’ Compensation-Related Statistics In New Jersey

    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.

    Injuries At Work: How Many Occur?

    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:

    • In the private sector, TRC incidence rates ranged from 0.8% in financial activities and professional and commercial services to 6.8% in education and health care
    • Two supersectors — trade, transportation, and utilities, and education and health services — which account for 45% of private industry employment, reported 70% of occupational injuries and illnesses
    • In the private sector, the TRC injury and illness incidence rate ranged from 0.8% in companies with 11 or fewer workers to 4.7% in companies with 1,000 or more workers
    • 2020's private sector TRC rate of 2.9 in New Jersey was much higher than 2019's rate of 2.5

    Frequently Asked Questions 

    Here are some frequently asked questions regarding workers’ compensation in New Jersey:

    How long is workers' compensation in NJ?

    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.

    Who needs workers' compensation in NJ?

    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.

    Is workers' comp taxable in NJ?

    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.

    Other Insurance Types

    Check out the importance of worker’s compensation here at Assured Standard!

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