Workers’ Comp: A Guide For New Jersey Businesses

Isabella Goode

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Businesses in New Jersey are mandated by State laws to provide compensation for their workers. The state regulates workers’ compensation, and its statutes may differ from those in other states. Businesses must fully and clearly understand workers’ compensation to comply with the relevant regulations accurately. Here’s what you should know about workers’ compensation in NJ.

Workers' Comp

Workers’ Comp Source:  unsplash.com

Workers’ Comp Protects Businesses

Taking workers’ comp protects businesses from injury liability if employees get injured at work. Work-related injuries cost businesses millions yearly. Injuries are largely unpredictable and can occur anytime. With workers’ comp, businesses and workers can reach satisfactory agreements so that neither side comes off worse. In addition, workers comp covers legal representation for businesses. Taking workers’ comp also protects businesses from legal disciplinary action by the state on businesses that do not comply with the law.

Some Employers and Workers Are Exempt

Not all workers qualify for workers’ comp in NJ; some categories of workers are exempt by law. For example, unpaid volunteers and interns, sole proprietors (without employees), and independent contractors are exempt from filing workers’ comp claims. The State of New Jersey mandates employers to provide workers’ comp for employees who are not on a federal program or do not qualify for self-insurance. Corporations, LCCs, and sole proprietors must establish workers’ comp unless they meet certain conditions, such as not having other staff besides the principal officer.

Choosing the Insurance Provider

Choosing an insurance provider is vital for businesses when setting up workers’ comp. The right workers’ compensation in NJ provider ensures businesses have control over the process. Insurance providers offer various benefits businesses can leverage, but choosing the right provider is key to unlocking those benefits. Certain factors are necessary to get the right workers’ compensation NJ provider. Pricing, insurance types, and track records should influence this decision. In addition, the insurance provider must meet State conditions and be licensed to provide workers’ comp within New Jersey.

Benefits Covered by Workers Comp

Workers’ comp in New Jersey covers not all benefits. The State’s Department of Labor and Workforce Development determines what benefits are covered by insurance. There are five benefits: death benefits, medical benefits, permanent total benefits, permanent partial benefits, and temporary total benefits. The conditions for each benefit are unique and follow the state’s statutes.

Workers’ Comp Application and Regulation

The New Jersey Compensation Rating and Inspection Bureau (NJCRIB) regulates all matters concerning workers’ comp in New Jersey. From granting approvals to regulating rates, the NJCRIB ensures the program’s quality and is responsible for employers seeking redress. Employers that meet the requirements can successfully take workers’ comp insurance directly from their preferred provider.

Paying Workers’ Comp and Reducing Costs

It is standard procedure for businesses and insurance providers to agree on the amount to be paid. Workers’ comp is paid directly to affected workers or, in cases of death, to the legally recognized kin. Businesses can take specific steps to reduce associated costs. These include establishing safety programs, return-to-work programs, prioritizing communication with injured workers, and choosing the right medical provider in agreement with the insurance provider.