If you are injured or become ill as a direct result of your job, you may be eligible for workers compensation benefits in New Jersey. These benefits range from medical benefits to various disability benefits to death benefits for your family if you die from a work-related injury or illness.
Each state has its own workers compensation insurance laws and regulations. Here’s a look at how things work in New Jersey.
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Businesses That Must Buy New Jersey Workers Comp Insurance
Here is a look at the different types of New Jersey businesses that are required or excluded from carrying workers compensation insurance in New Jersey.
- All corporations must maintain workers compensation insurance for their employees
- Sole proprietorships operating in New Jersey that don’t employ other people don’t have to buy workers comp insurance
- Partnerships and limited liability companies operating in New Jersey must have workers compensation coverage for their employees but this coverage can exclude partners or members of the LLC
- Domestic workers and farm workers are covered under the workers compensation law in New Jersey
- Workers considered to be independent contractors rather than employees are not covered by New Jersey’s workers compensation law
What Workers Comp Insurance Covers in New Jersey
In New Jersey, workers compensation covers a number of benefits such as:
- Medical benefits. Necessary and reasonable medical treatments, prescriptions and hospitalization services.
- Temporary disability benefits. If an injured worker is disabled for a period of more than seven days, they will be eligible to receive temporary disability benefits at a rate of 70% of their average weekly wage.
- Permanent partial benefits. When a job-related injury or illness results in a partial permanent disability, benefits are available and paid weekly.
- Permanent total benefits. When a work injury or illness prevents a worker from returning to any type of gainful employment, they may be entitled to permanent total benefits. Permanent total benefits are paid weekly and are based upon 70% of the employee’s average weekly wage.
- Death benefits. Dependents of a worker who dies because of a work-related injury or illness may be eligible to receive death benefits. Death benefits are weekly payments equal to 70% of the weekly wage of the deceased worker.
Where to Buy Workers Comp Insurance in New Jersey
One way to obtain workers comp in New Jersey is through a workers compensation insurance company. Premiums are based on the classification of the work performed by employees, and the claims history and payroll of the employer.
There are more than 400 private, licensed insurance companies authorized to sell workers compensation policies in New Jersey. You can purchase a policy from an insurance company, insurance agent or broker.
Another way to obtain workers compensation coverage is through self-insurance. With self-insurance, a company has two choices for managing the program. The company can choose to handle its own workers compensation claims or it can hire a third party to run a workers comp program.
To become self-insured for workers comp, you’ll need to complete an application and receive approval from the New Jersey Commissioner of the Department of Banking and Insurance. Whether or not a business gets approved for self-insurance depends on how well it can meet workers comp obligations under state law and how long it has been in operation.
Largest Workers Comp Insurance Companies in New Jersey
| Rank | Company |
|---|---|
| 1 |
NJM Insurance
|
| 2 |
The Hartford
|
| 3 |
Travelers
|
| 4 |
AmTrust Financial
|
| 5 |
Liberty Mutual
|
| 6 |
Chubb
|
| 7 |
Berkshire Hathaway
|
| 8 |
Zurich
|
| 9 |
Selective
|
| 10 |
Old Republic Insurance
|
New Jersey Workers Compensation Cost
The average workers compensation insurance cost in New Jersey is 27 cents for every $100 in payroll for the lowest-risk employees and $19.72 for every $100 in payroll for the highest-risk employees, according to Cerity.
Penalties for Failure to Maintain Workers Comp Coverage
In New Jersey, a failure to provide workers compensation comes with penalties of up to $5,000 for the first 10 days and up to $5,000 for each additional 10-day period of failing to insure.
These penalties may not be discharged in a bankruptcy.
With a New Jersey corporation, the liability for failure to have workers compensation insurance can be extended to the corporate officers individually.
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When to Report a Claim
The worker should notify the employer as soon as possible about a workers comp injury but not later than 90 days from the date of the accident.
This notice may be given to the supervisor, personnel office or anyone in authority at the employer’s place of business. The notice does not need to be given in writing.
Tips for Handling Workplace Safety and Workers Comp
- Establish a safety program. Involve your employees in identifying hazardous work practices and potentially harmful work situations, areas and equipment. Establish safety teams. Many insurance companies offer free advice to policyholders about how to establish and maintain safe workplaces. Use these free programs wisely.
- Start a return-to-work program. Creating return-to-work programs, which include light-duty or modified jobs, can encourage workers to return to their employment sooner and lower business costs. The employer should provide an injured worker’s job description to their medical care provider. Doing so may help to facilitate the early release of the worker into a modified job.
- Get prompt treatment from medical providers. Seeing that an injured employee gets immediate medical attention will help assist them in receiving the proper treatment and this may help them get back to work sooner. Under New Jersey law, the employer and the insurance company select medical providers to treat injured workers for work-related injuries. Choose the best medical providers for your employees.
- Maintain good communication with injured employees. Communicate with injured employees on a regular basis by phone or in person. Remain positive and upbeat. Make sure all employees have information about workers compensation by posting signs. Publicize company procedures for job-related illnesses and injuries. Let workers know which doctors they must see for work-related claims.
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