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Exploring New Jersey Workers’ Comp Alternatives

Exploring New Jersey Workers’ Comp Alternatives

Naturally, one of the biggest financial concerns of most businesses is the cost of their insurance, not excluding New Jersey Workers’ Compensation. Many companies will look for ways to cut costs or at least control their costs better. As a result, although some form of Workers’ Compensation coverage is required for all employers in all states, business owners may look for alternatives to this coverage; such as self-insurance, large-deductible plans, or retrospective rating plans.

Self-insured Workers’ Compensation programs are perhaps one of the most popular Workers’ Comp alternatives; allowing the employer to assume the financial risk for providing Workers’ Compensation benefits to its employees. These employers are choosing to pay the cost of each claim ‘out of pocket’ as they are incurred instead of paying a premium to an insurance carrier. While some companies may be able to do this with ease, this is more of a challenge for large accounts who have many employees and higher risks.

The good news is, there are options for these large accounts. For example, at ASIA we offer a guaranteed cost Workers’ Compensation plan, where an employer pays a fixed premium or rate for their policy term, regardless of the number of losses or the amount of losses that occur during that time period. This is advantageous over a loss sensitive plan, where the final premium is dependent on the actual losses during the period the plan is in effect.

Whatever your large account clients’ New Jersey Workers’ Comp Insurance needs are, we at Associated Specialty Insurance Agency (ASIA) have the coverages available. In addition to guaranteed cost plans, we offer large-deductible plans and retrospective rating plans. To learn more, please contact us today at (866) 679-7457.

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