Workers’ Compensation Insurance for Hedge Funds in New Jersey
Nearly all companies in New Jersey are mandated to have Workers’ Compensation policies for their employees in case of an on-the-job injury. This rule applies to all corporations and LLCs, and hedge funds are no exception.
New Jersey bases its requirements for Workers’ Compensation coverage on the number of workers employed by a company. Hedge funds with at least one employee typically need to have insurance. Although hedge fund employees do not submit Workers’ Compensation frequently, accidents can and do happen in office settings. Even though premiums for companies like hedge funds are typically inexpensive compared to companies in other industries, employers might want to cut costs. This can be achieved through encouraging employees to use safe practices at all times to reduce the number of avoidable workplace accidents.
When you call NPN Brokers today at (866) 340-9120, your hedge fund can start the process of getting a workplace liability policy from our New Jersey Workers’ Compensation insurance brokers.
How New Jersey Determines Workers’ Compensation Coverage Requirements for Hedge Funds
New Jersey does not have separate Workers’ Compensation coverage requirements for companies in different industries like some other states do. Generally, any company with employees needs Workers’ Compensation.
All corporations, partnerships, LLCs, and sole proprietorships must comply with New Jersey’s Workers’ Compensation statute so long as they employ additional workers outside of officers, partners, members, or principal owners. As hedge funds tend to be large operations, they must purchase Workers’ Compensation or get approved to self-insure. Unpaid interns working at hedge funds do not need to be covered by Workers’ Compensation policies in New Jersey.
The consequences for failure to insure can be severe. When hedge funds do not adhere to requirements for Workers’ Compensation coverage, they can be fined $5,000 for each ten-day period that they do not have insurance. Hedge funds will likely not be permitted to operate in any capacity until they secure the necessary workplace liability insurance.
Employees can report uninsured hedge funds at any time by filing a Report of Non-Compliance form online with the New Jersey Department of Labor and Workforce Development.
How Frequently Do Employees of Hedge Funds Submit Workers’ Compensation Claims in New Jersey?
Although injuries among hedge funds workers are infrequent, they can happen, causing employees to submit Workers’ Compensation claims to recover benefits in New Jersey.
Workplace accidents in office environments vary in severity. Employees of hedge funds might be injured in a slip and fall accident in the office. Repetitive motion injuries caused by typing might also occur. Should an employee be injured while working for a hedge fund, they are entitled to benefits, even if the injury was not the fault of their employer.
Many accidents in office workplaces are preventable by maintaining a safe working environment and addressing any potential hazards to employees. Other accidents due to employee negligence may be unavoidable but are still compensable via Workers’ Compensation claims in New Jersey. The biggest risk factor concerning hedge funds is payroll. When a company employs more workers, the company has a higher risk of workplace accidents, even if it is not in a dangerous industry.
Can Hedge Funds Be Sued if They Do Not Have Workers’ Compensation Coverage in New Jersey?
The Workers’ Compensation system exists to provide a simple pathway to recovery for injured workers and to protect employers from civil litigation. When hedge funds do not comply with Workers’ Compensation requirements in New Jersey, they can be sued by their injured employees.
Hedge funds only have to worry about potential work injury lawsuits if they do not have a workplace liability policy in place and an accident happens, harming an employee. If an accident does not occur, a hedge fund may still be vulnerable to financial penalties from the Division of Workers’ Compensation if it is found to be non-compliant.
When an injured hedge fund worker cannot submit a Workers’ Compensation claim to recover benefits, they may choose to sue their employer. Work injury lawsuits can be filed within two years of a workplace accident or two years from the date of discovery. Unlike in Workers’ Compensation claims, injured employees can recover non-economic damages in addition to economic damages when they sue hedge funds in New Jersey.
Lowering the Cost of Workers’ Compensation Coverage for New Jersey Hedge Funds
Although the cost of Workers’ Compensation for companies like hedge funds may already be relatively inexpensive, it still benefits employers to find ways to lower the price of their premiums.
The best way to do this is to inform employees about standard workplace safety procedures. For example, employees should not stand on chairs to access something outside of their reach and should instead use step ladders. While this might seem obvious to you, falling while standing on an office chair is a top cause of workplace accidents in office environments.
Employees should also be informed of the protocol for reporting and addressing problems in the hedge fund office, such as a broken floorboard or a defective printer. Employees should not address these issues themselves, as doing so could result in an accident. The more time between employee injuries, the more Workers’ Compensation premiums can be reduced.
Obtaining an affordable policy from the get-go is also possible. When given the necessary information about your hedge fund, our Workers’ Compensation insurance brokers can obtain quotes in as little as a day. We can review the quoted policies alongside you so that you feel comfortable with your monthly premiums. Workers’ Compensation costs should be based on a company’s risk factors, and because the risk factors of hedge funds are few, premiums for your company should not be too expensive in New Jersey.
Call Our New Jersey Brokers for Workers’ Compensation Coverage
By calling (866) 340-9120 and speaking with our Workers’ Compensation insurance brokers, you can get the coverage you need from NPN Brokers.
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