Workers’ Compensation Insurance for Financial Firms in New Jersey
New Jersey’s Workers’ Compensation requirements apply to all businesses, including financial firms.
Though financial firms are not likely to see many workplace accidents in New Jersey, they still need Workers’ Compensation insurance in most cases. When financial firms do not follow this mandate, they can be penalized by the Division of Workers’ Compensation. Furthermore, financial forms without insurance coverage will likely be responsible for covering all expenses related to an employee’s injuries. Fortunately, the cost of Workers’ Compensation for financial firms is often low, because of the lack of risk associated with these types of businesses.
To get a policy from our New Jersey Workers’ Compensation insurance brokers, call NPN Brokers at (866) 340-9120.
Do Financial Firms Need Workers’ Compensation Coverage in New Jersey?
Nearly all companies in New Jersey are mandated to have Workers’ Compensation unless they qualify to self-insure. This includes financial firms and other low-risk companies.
In New Jersey, any corporation, partnership, LLC, or sole proprietor with at least one employee outside of the principal owner, corporate officers, partners, or LLC members must have a workplace liability insurance policy. There are no additional exceptions to this rule.
While self-insuring is an option for some financial firms in New Jersey, it might not be good one. First of all, in order to self-insure, financial firms must be financially secure enough to handle the cost of a workplace accident. Because of this, self-insuring is not financially wise for many companies, even successful ones. Second, if your financial firm chooses to self-insure, it will have to pay Workers’ Compensation benefits out to an injured worker out of pocket. So, instead of your carrier paying benefits for a workplace accident, your financial firm will. The benefits paid by your company will be the same benefits an employee would have been entitled to through Workers’ Compensation.
Because of this considerable financial risk, getting coverage through our Workers’ Compensation insurance brokers in New Jersey is generally wisest. We can find a comprehensive policy that covers all necessary employees of your financial firm so that your company adheres to coverage requirements and remains protected from liability or consequence.
What Can Happen if Financial Firms Do Not Get Workers’ Compensation Coverage in New Jersey?
Failure to carry Workers’ Compensation is a serious offense in New Jersey. Not only does it put your employees at risk of financial hardship following workplace accidents, but it also puts your financial firm in jeopardy of incurring serious penalties.
Not providing Workers’ Compensation when required to is a crime of the fourth degree in New Jersey. Financial firms found to be out of compliance with insurance requirements will also be given stop-work orders. This means your company will be unable to speak with clients, provide financial advice, or oversee transactions during the time a stop-work order is in place. The stop-work order will be lifted once your financial firm secures Workers’ Compensation coverage.
Financial firms might also be fined up to $5,000 over each ten-day period that they fail to get Workers’ Compensation after being informed they are non-compliant. While companies can be fined accordingly, so can individual corporate officers of financial firms. Penalties for failure to get Workers’ Compensation can become exceedingly expensive the longer a company does not insurance when required to.
Liability for Worker Injuries
In addition to getting civil consequences from the Division of Workers’ Compensation, financial firms without coverage can be held directly liable for any injuries a worker sustains on the job. While employees of financial firms are at a lower risk of being hurt in workplace accidents, such incidents can still occur, causing serious injuries. Should an accident happen and your financial firm is without insurance, an injured worker could sue your company. While New Jersey limits recovery in Workers’ Compensation claims, it does not do so in the same way for workplace accident lawsuits. This means your financial firm could be responsible for paying economic and non-economic damages to a hurt employee in New Jersey. Although the risk of serious injuries occurring among employees of financial firms is lower than the risk of construction workers getting hurt on the job, accidents can and do still occur in these types of environments. The only way to safeguard your company from such civil litigation is by getting Workers’ Compensation insurance.
Pricing Workers’ Compensation Policies for Financial Firms in New Jersey
Because financial firms do not present an elevated risk in terms of Workers’ Compensation, policies might be more affordable for these companies in New Jersey.
The Workers’ Compensation premiums for your financial firm should not be too expensive. This is because insurance carriers assess premiums according to risk factors. More labor-intensive jobs are riskier, while office jobs, like working at a financial firm, are much safer and present a lower risk for on-the-job accidents. So, from the get-go, your baseline Workers’ Compensation premiums should be low. Changes to premiums can occur as workplace accidents happen. For example, if your financial firm has seen several Workers’ Compensation claims in the past few years, its premiums might increase. When you find an affordable policy from the onset, slight changes in premiums due to employee claims should not be an issue.
If your financial firm is a partnership, sole proprietorship, or LLC, its partners, sole proprietor, or LLC members will automatically be exempt from its policy. It will still need Workers’ Compensation if it employs other workers. These exemptions can lower the cost of Workers’ Compensation for your financial firm. That said, exempt individuals cannot file a Workers’ Compensation claim for benefits if they are hurt at work. Exempt employees of financial firms can elect into coverage if they choose in New Jersey.
Call NPN Brokers to Get Workers’ Compensation Coverage in New Jersey
To discuss the coverage needs of your financial firm in New Jersey, call the Workers’ Compensation insurance brokers at NPN Brokers at (866) 340-9120.
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