Brick Township, NJ, has been ranked as the safest city in the state, second safest in the nation. With over 75,000 residents, that's a big deal. When you own a business in this pristine town, there are some things you need to know about workers' compensation insurance.
If you have employees, workers' compensation coverage is required. Fortunately, an independent insurance agent can help with state law and local guidelines. Get connected with an adviser to begin.
What Are the Basics of Workers' Compensation Laws in Brick Township, NJ?
Workers' compensation insurance pays for lost wages and medical expenses of an injured or ill employee. When one of your staff members gets hurt due to their job, you'll be responsible. A battle could go on for months or longer and might put you out of business.
In Brick Township, NJ, workers' compensation insurance is mandatory. If you have one employee or more, you are required to carry this policy. To avoid penalties and financial ruin, consider coverage.
What Does Workers' Compensation Cover in Brick Township, NJ?
If you're without workers' compensation insurance, an employee injury or illness could put you out of business. Since medical expenses and lost wages can add up quickly, consider adequate protection. Check out what workers' compensation insurance can cover.
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
Brick Township requires a certain amount of workers' compensation coverage to comply with the law. Usually, the limits are set very low and aren't enough for a decent loss. To ensure you're getting all your exposures accounted for, review your policies with an adviser.
Who Does Workers' Compensation Cover in Brick Township, NJ?
Your business insurances are at risk when you hire outside workers. Anything from commercial auto to workers' compensation can be up for grabs. Take a look at some of the people your workers' compensation policy can insure.
- W-2 employees
- Non-exempt owners, partners, members, and officers
- 1099 contractors
If you use 1099 contractors, you're lending out your insurance. The only way to go around this is by requiring proof of coverage. When you have 1099 workers with their own policies, their insurance applies instead of yours.
Where Can You Purchase Coverage in Brick Township, NJ?
Like all your business insurance, you can purchase workers' compensation coverage in a few different ways. There are three options in Brick Township, NJ, to choose from when obtaining a policy. Take a look below.
- Option one: You can get a policy through a private carrier. You'll have your pick at a variety of options and the help of an agent.
- Option two: You can self-insure through a group fund. By pooling your money with other business owners, you can avoid large premiums. You'll have to meet specific financial qualifications.
- Option three: When two or more carriers decline coverage, you'll have a last resort option. The assigned risk pool will offer a steeply priced policy until you get the experience needed to go to the private sector.
How experience modification rating affects your premium in New Jersey
If your Brick Township workers' compensation premium is $5,000 or more in two years, you'll have an Experience Modification Factor (X-mod). An X-mod lets company underwriters know how often you file claims and what's to be expected. It works like this.
- When you have an X-mod of 1.0, it doesn't affect your premium. Every employer will start with a 1.0 X-mod, and it's the baseline.
- When you have an X-mod greater than 1.0, it is considered a debit mod. That means you had losses, and your premiums will increase.
- When you have an X-mod less than 1.0, it is the credit mod. This is the best spot because your loss history was better than expected, and you get lower premiums because of it.
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How Much Does Brick Township, NJ, Workers' Compensation Cost?
Base rates determine workers' compensation insurance costs. Every $100 in payroll is rated per job type. The lowest base rate in New Jersey starts at $0.27 and goes up to $19.72. Check out some items the companies consider when deciding your costs.
- Classification codes: Each job duty is assigned a class code by task type and risk factors.
- Loss history: The frequency and longevity of your claims will affect your costs.
- Experience level: The longer you've been in business with fewer claims, the more options you'll have.
New Jersey base rate examples
The National Council of Compensation Insurance (NCCI) sets the base costs per job type. The riskier the class, the higher the premium assigned. Check out some examples of base rates per $100 of employer payroll.
- 8397 Auto service and repair- mechanic - $5.69
- 8742 Sales professional - $0.42
- 8810 Clerical - office employee - $0.18
- 8829 Nursing homes and assisted living facilities - $4.72
- 8835 Home healthcare workers - $5.22
- 8840 Religious organization- church- temple - $0.68
- 8868 Child care center- daycare providers - $1.43
Most Common Workers' Compensation Claims in NJ
In New Jersey, 209.49 million dollars in benefits were paid through workers' compensation programs. A slip and fall is the most common claim reported. By taking precautions, your workplace can be safer. Take a look at the top items that will help reduce injury or illness on the job site.
- Hold regular safety meetings with staff
- Assign a safety officer to keep guidelines monitored and abided by
- Be proactive in workplace safety measures to avoid injury or illness
- Have posted safety protocols for all to see and follow
- Have a risk consultant review all your business policies for safety measures that should be taken
How a Brick Township, NJ, Independent Agent Can Help
Workers' compensation insurance can be confusing if you're not a professional. This policy is regulated by New Jersey, making the right coverage crucial to avoid fines. If you're tired of searching on your own, consider using a trusted adviser.
An independent insurance agent can access multiple carriers at once, doing the shopping for you. They work at zero cost to your business, saving time and money. Connect with a local expert on TrustedChoice.com in minutes.