Work Comp Benefits are going up in 2020 for the New Jersey Business Community
In 2019, the New Jersey Senate approved an adjustment to the supplemental benefits for certain injured workers receiving workers’ compensation. These means insurance carriers who offer coverage to businesses within the state of New Jersey will have to pay out more for benefits within the system. This could raise the costs to provide coverage and may cause the business community to see higher rates for premium when buying coverage in the future. The New Jersey Department of Banking and Insurance requested a 3.8% decrease in overall premium effective January 1, 2020.
The revisions to the recommended workers’ compensation rates are proposed at this moment. The recommendations are based upon recent experience claims throughout the state and an annual review of classification relativity. If these New Jersey Workers Compensation Rates 2020 are approved, it will mark the fourth consecutive year rates have decreased and the fifth consecutive year without any increases.
The Amount paid out for Temporary Disability and Total Disability has nearly doubled since 1997 ($496 max /$132 min in ’97 and $945 max/$252 min in 2020). The amount for Total Permanent Disability (70% of wages) is now at a maximum rate of $945.00 and a minimum rate of $35.00 per week. The amount paid for Temporary Disability (70% of wages) is now set at a maximum rate of $945.00 per week and a minimum rate of $252.00 per week. The maximum duration a person can be on temporary disability is currently at 400 weeks. Death benefits are again at 70% of wages with a maximum rate of $945.00 and a 450 weeks plus the spouse’s statutory benefits. An allowance for funeral is now capped at $3,500.00.
5 Ways Business Owners Can Save on Workers Comp
Bundle all Policies
When purchasing commercial insurance for your Small Business, it is important to package all of the policies together with one carrier. Carriers are more likely to dig deep for additional credits and discounts when they know they are getting the business of multiple policies. Talk to your agent about bundling all policies together as a way to save of business insurance.
In addition to bundling all policies together, it is important to periodically shop around your policy. If for no other reason, shopping around makes sure your carrier is competitive with the market. While it is not wise to switch carriers each year based upon a slight drop in premium, but it is important to look around to make sure you are getting a competitive rate on premium.
Partner with an Independent Agent
One of the easiest ways to shop around your policies, is to partner with an independent insurance agent. An independent agent partners with multiple carriers and they can force them to compete for your business. This will not only save you time, but will get your business better coverage at a lower rate.
Implement a Safety Program
A Safety Program is a great way to prevent claims from happening and to keep the claims that do happen from being severe. While a safety program is being implemented, you should include employees at all levels of the business during the design phase of the safety program. Once the safety program is implemented, all meetings should be documented. This documentation can help when you are purchasing insurance and when an insurance claim occurs.
Ask for Discounts and Credits
If you value taking advantage of all available ways to save on insurance coverage, tell your insurance agent this is what you value. Insurance agents interact with many people from many different walks of life. These people they interact with have many different priorities when it comes to purchasing insurance. If you value savings above all else, tell your insurance agent.