As an employer in the state of New Jersey, there’s one thing you know about workers’ compensation insurance: you need it.
However, there’s a difference between knowing you’re required to purchase coverage and actually doing so. With the right approach, you can secure a comprehensive policy at a competitive rate.
(Brand new to this? Start here: The Absolute Beginner’s Guide to Workers’ Compensation)
How to Get a Workers’ Comp Quote in New Jersey
In New Jersey, workers’ compensation insurance can be purchased in two ways:
- Through an insurance company licensed to sell coverage in the state.
- Through self-insurance. Because of the financial resources to meet all obligations, this is typically reserved for large companies.
While self-insurance is an option for some, most employers in New Jersey purchase workers’ compensation insurance directly through an agency or broker.
Upon contacting an agency or broker and providing the necessary information, they can provide you with a quote based on company size, location, industry, and claims history, among other details.
For a comprehensive explanation on what information you’ll need and what to expect, read: How to Get a Workers' Compensation Quote: The Step-by-Step Beginner’s Guide.
NJ Workers’ Compensation Rates and How to Save
New Jersey workers’ compensation insurance rates are among the highest in the country, due in large part to strict regulations for businesses based in the state.
State law requires insurance providers to all follow the workers’ compensation rates published by the state rating bureau, the New Jersey Compensation Rating and Inspection Bureau (NJCRIB). As a base rate state, carriers are required to use the rates published by the rating bureau. However, unlike strict base rate states like Florida, insurers are allowed to deviate slightly from base rates to reflect the individual characteristics of an account. These would be shown in the form of a credit or debit applied to your premium.
That said, it’s worthwhile to get a quote from a workers’ compensation expert to make sure you’re getting the most accurate and fair price for your business. Also, find an insurer that values your business and proves high quality, convenient service.
Related read: What to look for in a small business insurance agency.
Also, there are other ways to save on workers’ compensation insurance in NJ, such as by focusing on workplace safety as a means of reducing the number of claims. Fewer claims mean a more affordable insurance premium, while more claims are sure to increase your cost.
How Else Can You Save?
- Classification code: Work with an expert in workers’ compensation insurance so your business is assigned the right class code.
- Payroll: Calculate payroll accurately to avoid overpaying for coverage. (Under-paying will also come back in the form of a bill when your business is audited at the end of the year.)
More on Workers’ Compensation Insurance Costs
- How to Calculate Workers’ Compensation Cost Per Employee
- Workers' Compensation Insurance Cost Calculator: How Much for a Small Business Policy?
- 7 Tips for Buying Work Comp Insurance
If you’re struggling to understand the New Jersey workers’ compensation system or need help purchasing a policy, don’t hesitate to contact us for guidance. We can walk you through the process from start to finish.