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Understanding New Jersey Workers’ Compensation Laws – Part 1

Understanding New Jersey Workers’ Compensation Laws - Part 1Understanding New Jersey Workers’ Compensation Laws – Part 1

Workers’ Compensation laws can be tricky territory for many employers. Most know that it’s required by law to carry Workers’ Compensation if the business has 1 or more employees, however some employers don’t realize that specific Workers’ Compensation rules and regulations will vary depending on the state they’re located in. With this in mind, do your clients understand New Jersey Workers’ Compensation Laws? The following are details provided by the AMAXX Workers Comp Resource Center pertaining the laws specific to the state of New Jersey in regards to Workers’ Compensation. *

First off, there are exceptions to the legal necessity of New Jersey Workers’ Compensation. If your client is a New Jersey business owner with independent contractors under their wing, they are not mandated to offer Workers’ Compensation insurance, although a sizable number of individual independent contractors who would not be look at as employees in other states will be thought of as an “employee” in New Jersey.

Employers in New Jersey do have the option to receive approval from the New Jersey Commissioner of the Department of Banking and Insurance (DOBI) to serve as an independent self-insurer, however restrictions do apply. These employers should check with the DOBI if interested. Otherwise, it is legally necessary for employers to acquire a New Jersey Workers’ Compensation policy through an insurer with authority to conduct business in the state.

Another factor of Workers’ Compensation that is different depending on the state is how to report a claim. In New Jersey, in the instances when a claim must b reported, the injured worker is required to report the incident to his or her boss within three months of injury. The notice of this injure may be passed on to the employees’ supervisor, personnel team, or any worker that holds an authoritative position at the company.

In part 2 of this post, we will look at other New Jersey Workers’ Compensation factors that will be different than other states such as how medical benefits are determined and dealing with disability benefits. To learn more about how New Jersey Workers’ Compensation Law, please contact the Associated Specialty Insurance Agency, Inc. (ASIA) at (866) 679-7457. Insurance agents and brokers with access to competitive markets have the opportunity to leverage an improving economy set to spur the workers compensation industry with an increase in jobs and payroll exposure, all while capitalizing on the ability to secure coverage for their clients in various industries.

*It’s imperative to remember that all state laws vary and that employers should always consult with their insurance brokers, attorney, or qualified professional before making a decision regarding their Workers’ Compensation coverage. 

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