How Much Does It Cost to Get Workers Compensation Insurance?
Workers’ compensation insurance is a state-mandated and regulated program designed to protect workers. It provides benefits to cover medical expenses and lost wages for employees injured on the job. In the event of death, the employee’s dependents can also receive death benefits. The program also protects employers from lawsuits by injured workers.
Employers are required to take out workers’ compensation for their employees. Failure to do so could result in heavy fines and penalties. But, exactly how much does it cost to get workers compensation insurance? Is it worth it? Here is an overview of workers’ compensation in New Jersey.
If you get injured on the job in the state, contact the Law Offices of Anthony Carbone to discuss your eligibility for benefits with an expert North Bergen Personal Injury Attorney.
Are You Required to Carry Workers’ Compensation Insurance?
In New Jersey, corporations must carry workers’ compensation insurance if any person in them performs services for present or future economic value. The same applies to partnerships and limited liability companies with employees other than a partner or shareholder.
Sole proprietors must also have insurance if anyone other than the principal owner performs economically valuable services. Generally, these businesses can either purchase a policy or seek approval to self-insure.
How do You Buy Workers’ Compensation in New Jersey?
Business owners in New Jersey have three options for acquiring workers’ compensation coverage. One, they can purchase a policy from a certified commercial insurance provider. Large companies often apply for permission to self-insure from the state. if an employer’s applications are denied in the private market, they can seek coverage from the New Jersey Workers’ Compensation Insurance Plan.
How Much Does Workers’ Comp Insurance Cost?
The rates offered to a business will usually vary from state to state. Workers’ compensation rates in the state are set by the New Jersey Compensation Rating and Inspection Bureau. Generally, the bureau will set rates for your business depending on:
- Your industry
- Your annual payroll
- Your claims history
- The type of work performed by your employees
If the work performed by your employees is physically demanding or you have a history of workplace accidents, you will likely need to pay higher premiums. Your rates could also decrease over time if you continue to improve workplace safety.
What if You Don’t Get Workers’ Compensation Insurance?
Failing to carry workers’ compensation insurance is a criminal offense. If you are uninsured in New Jersey, you could face severe penalties. You could also expose yourself to personal liability and criminal charges. Penalties can go as high as $5,000 per day for an initial 10-day period, and $5,000 for every additional 10-day period after that.
Talk to a North Bergen Personal Injury Attorney
How much does it cost to get workers’ compensation insurance? Overall, the answer to this question is, ‘it depends.’ Because workers’ compensation is a state-regulated program, policy costs will often depend on your business’s location. Some businesses, such as those with more risk or employees, will also pay more than others.
The best way to determine how much you should pay for workers’ compensation is to consult an attorney. A North Bergen Personal Injury Attorney can evaluate your business and state laws to give you an estimate. You can then shop around for reasonable policyholders.
If you need help with a workers’ compensation case, contact attorney Carbone for help.