New Jersey Workers’ Compensation Coverage for Small Businesses
Some states base Workers’ Compensation requirements on company workforces, allowing smaller businesses to go without coverage. In New Jersey, even the smallest companies typically have to get insurance.
New Jersey is clear that almost all businesses, regardless of size, need to have Workers’ Compensation. Insurance is important for all companies including small businesses, as it can protect them from being financially responsible for the damages associated with injuries sustained in a workplace incident. Getting coverage can also allow small businesses to avoid financial consequences for non-compliance with New Jersey’s Workers’ Compensation laws. Cost is often a concern of small business owners regarding Workers’ Compensation. Fortunately, you can lower costs by working with our brokers and doing your best to lower the frequency of workplace accidents.
Get coverage by calling the New Jersey Workers’ Compensation insurance brokers at NPN Brokers today at (561) 990-3022.
Small Businesses that Need to Have Workers’ Comp Coverage in New Jersey
Workers’ Compensation coverage requirements in New Jersey do not just pertain to companies with large workforces or those in the most dangerous industries. Even small businesses typically need to purchase and maintain Workers’ Compensation at all times if they operate in New Jersey.
Virtually all small businesses must purchase Workers’ Compensation in New Jersey. That is because New Jersey mandates that most companies with at least one employee need insurance. That includes most corporations, partnerships, sole proprietorships, and LLCs. There are some exemptions available that small businesses in New Jersey might be able to use to help them save on Workers’ Compensation premiums. If you are involved in a partnership or own a sole proprietorship and employ no additional workers, you will not need to purchase Workers’ Compensation coverage in New Jersey. If you wish to, however, you can.
Because your business will most likely need to get Workers’ Compensation, it is important that it finds coverage that is comprehensive and inexpensive. Our Workers’ Compensation insurance brokers can consolidate important information about your company to estimate the cost of insurance and approach trusted carriers so that you can get an insurance policy that meets the needs of your business and its bank account.
If any business hires an independent contractor, the independent contractor will not need to be covered by the company’s Workers’ Compensation policy. The same goes for any small businesses with unpaid interns or volunteers in New Jersey. That said, if you have even just one regular employee, you will likely need to find and maintain a valid Workers’ Compensation policy at all times in New Jersey.
Benefits of Workers’ Comp Coverage for New Jersey Small Businesses
While Workers’ Compensation insurance benefits all types of companies in New Jersey, it provides the most crucial perks for businesses that could be more financially impacted in the event of a workplace injury, such as small companies.
When workplace accidents happen in New Jersey, employees have little choice but to file a Workers’ Compensation claim. That is because employers are generally shielded from litigation from injured workers, provided they have the necessary insurance coverage. When small businesses go without Workers’ Compensation, they risk becoming financially liable for the damages incurred by an employee in an on-the-job accident. This typically includes covering a percentage of a worker’s lost wages and medical expenses.
Additionally, Workers’ Compensation coverage can protect small businesses from the chances of incurring financial penalties due to non-compliance in New Jersey. Failure to secure Workers’ Compensation coverage is considered a serious offense and is punishable by fines of several thousand dollars. Fines may continue to be imposed as long as small businesses do not purchase Workers’ Compensation policies in New Jersey. Ignoring Workers’ Compensation laws might also result in criminal charges for owners of small businesses.
Getting workplace liability insurance can also allow small businesses to avoid detrimental stop-work orders. These orders mandate that operations cease entirely until companies are able to get a Workers’ Compensation policy. For businesses of smaller sizes, the financial ramifications of stop-work orders can be especially severe, even more so if they are coupled with the costs associated with a worker’s injuries in New Jersey.
How Small Businesses Can Save Money on Workers’ Comp in New Jersey
For many small businesses, Workers’ Compensation insurance can seem like an unnecessary expense. While that is understandable, coverage is typically required, making it a crucial cost that employers must accept. That said, there are ways to lower the price of Workers’ Compensation rates, especially for smaller businesses in New Jersey.
Saving money on Workers’ Compensation can begin as soon as you find a policy. It is important to verify you are not charged too much for your small business’s insurance policy. Our brokers can assess the most factors that determine coverage costs most heavily, such as company industry, age, payroll, and history of accidents, to see if the premiums your business was quoted is appropriate.
Reducing the cost of Workers’ Compensation also often requires increased safety programs. The longer a small company goes without seeing a work-related accident, the lower its Workers’ Compensation premiums will likely become. Small business owners can emphasize safety by increasing training efforts, introducing a drug-free workplace program, and ensuring manager oversight.
Pay-as-you-go insurance can also be helpful to small business owners in New Jersey in their efforts to lower the cost of insurance. This type of coverage allows you to base monthly premiums on real-time payroll information instead of annual estimates. If a small business’s payroll is routinely fluctuating, pay-as-you-go coverage may allow it to save considerably on Workers’ Compensation in New Jersey. Additionally, smaller businesses are often at an advantage regarding Workers’ Compensation prices, as costs typically go down the fewer workers you employ.
Small Business Owners Can Get Workers’ Comp in New Jersey Now
Call NPN Brokers at (561) 990-3022, and speak with our Workers’ Compensation insurance brokers today.
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