How to Get Workers’ Compensation Insurance for Your Company
Posted July 13th, 2021 by Anthony Carbone.
Categories: Workers Compensation.
Businesses in New Jersey can acquire insurance coverage to cover accidents that may happen at work and affect business operations. This can be done either through a private insurer or the New Jersey Compensation Rating and Inspection Bureau’s Assigned Plan. In some cases, a business may decide to self-insure, although this is quite expensive as it requires a lot of capital to cover claims that may arise.
It is crucial that employers learn how to get workers’ compensation insurance. If you have any questions about workers’ compensation in New Jersey, consult a Union City Personal Injury Attorney.
Step 1: Check State Requirements
Each state has its own worker’s compensation system. As such, you should acquire a workers’ compensation cover that is in accordance with the laws in the state where your business is located. It is also advisable to hire a commercial insurance representative who is familiar with the worker’s compensation system in your state and can steer you in the right direction.
Step 2: Find Out Your Classification Code
The number of employees you have will determine whether you need worker’s compensation insurance. But, the premium amount you pay will depend on your payroll, which also determines your business’s classification code. These are groupings used throughout the country to categorize employees according to the risk involved in their work.
Once you are up to date with the state requirements on workers’ comp, you should create a payroll that entails the following:
- A record of each employee.
- The yearly income of each employee rounded off to the nearest thousand.
- A combined payroll for employees who do the same kind of work.
- A short, detailed description of what each employee does and their job title.
Step 3: Find a Carrier or Agency
In accordance with your state regulations, there are specific places where you can purchase an insurance policy that may include through:
- An insurance broker who will handle administrative tasks, help your business to settle claims, and recommend a suitable business plan.
- A state fund provided by the state for small businesses.
- A private insurance carrier, who is allowed to sell a worker’s compensation insurance coverage.
- Assigned risk pools, usually offered by some states to high-risk businesses that have had multiple worker’s comp claims.
Step 4: Get a Policy Quote
At this stage, you can now call your preferred insurance carrier and request a quote for your business. Depending on the insurer, you may do this in person or online but will require the following:
- An EIN Number: This is your social security number as a sole proprietor.
- Basic Business Info: A detailed description of your business locations and operations
- Payroll and the number of employees
Contact a Union City Personal Injury Attorney
Under Section 34:15-79 of New Jersey Law, an employer can be criminally prosecuted or served with severe penalties for not having a workers’ compensation policy. This means that learning how to get workers’ compensation insurance will protect your workers’ from the aftermath of an injury and cover you from hefty fines and other penalties.
Anthony Carbone, a passionate Union City Personal Injury Attorney, has been handling personal injury cases, including workplace injury claims, for over 30 years. Contact his office today at 201-829-3829 to schedule a consultation and discuss your workers’ compensation concerns.