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A Workers’ Compensation Primer for Small Businesses

A Workers’ Compensation Primer for Small BusinessesInsurance agents with small business clients should know the importance of a good workers’ compensation insurance program. Workers’ compensation insurance ensures that workers who are injured while on the job are able to get the medical care and wage replacement they need until they’re able to return to work. Regardless of who is at fault in a workplace injury – an employee, the employer or even customers or visitors to the worksite – workers’ comp benefits are guaranteed to the injured workers.

Because workers’ compensation is a state-regulated program, small business are at the mercy of the state for many workers’ compensation-related decisions. It is the state’s statutes that determine the types of injuries and ailments that are covered, as well as how those issues are to be evaluated, how medical care is to be delivered and the total amount of benefits an employee may receive.

Small business owners, however, do have control over the type of workers’ compensation program that they decide to purchase for their business. One way that many small business owners save money on workers compensation insurance is through enrolling in a worker’s comp dividend plan. This type of plan rewards businesses that have successfully controlled their losses by paying them a dividend after their workers compensation policy has expired. These dividends are profits earned by the insurer that are shared with the policyholder.

Dividend plans are still overseen by state insurance departments, and the exclusive New Jersey Small Business Owners Workers’ Comp Dividend Program from Associated Insurance Specialty Agency (ASIA) is one plan that is available to small business clients throughout the Garden State. The dividend program is for new business submissions only and is written with A rated AmTrust exclusively through ASIA.

Some of the program’s features include:

  • $1,500 minimum premium with a $25,000 maximum premium.
  • Sliding scale dividend of up to 10% dependent on premium size and incurred loss ratio.
  • Schedule Credit and/or Managed Care Credit available on a case-by-case basis.

Target classes under this program include:

  • Hospitality
  • Restaurants
  • Professional Offices
  • Retail Exposures
  • Artisan Contractors
  • Light Manufacturing

For more information about ASIA’s exclusive NJ Small Business Owners Dividend program, please click here.

The decision to pay (or not pay) a dividend is made by the insurer’s board of directors and is wholly dependent on the financial results at the end of the policy period. So while agents must be careful not to guarantee dividends to their clients, they can help them lower their incurred cost ratio in order to place the odds more in their favor.

About ASIA Workers’ Compensation

Associated Specialty Insurance Agency, Inc. has been “The Workers’ Compensation Specialist for Brokers and Agents” for the past two decades and is committed to providing brokers and insurance agents across the East Coast with expertise and services to develop a Workers’ Compensation policy. For more information about how we can assist you with claims management, anti-fraud measures, and more call (610) 543-5510 to speak with one of our professionals.

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