What Should Workers’ Comp Insurance Cost in New Jersey?
Workers’ Compensation insurance shouldn’t break the bank. So, what should Workers’ Compensation cost in New Jersey, and how expensive is too expensive?
Knowing how much Workers’ Compensation should cost can be difficult, as insurance premiums tend to vary between businesses. That said, you can evaluate your current Workers’ Compensation premiums by learning your company’s New Jersey Compensation Rating and Inspection Bureau rate and honestly assessing your company’s possible risk factors. If you believe you are paying too much for Workers’ Compensation, our brokers can find you a pay-as-you-go plan that might reduce your insurance premiums for certain months. Employers can also lower their Workers’ Compensation costs by enrolling in New Jersey’s drug-free workplace program and prioritizing workplace safety in other ways, such as by increasing managerial oversight.
To find coverage for your company now, call the New Jersey Workers’ Compensation insurance brokers at NPN Brokers today at (866) 340-9120.
How Much Should Workers’ Comp Cost for My New Jersey Business?
The cost of Workers’ Compensation insurance varies drastically from business to business, as all companies have different risk factors that might increase the price of their premiums. That said, there are methods you can use to estimate the appropriate cost of insurance for your specific business.
Workers’ Compensation costs in New Jersey are based on a few things. The first is a company’s classification and rating. These are set by the New Jersey Compensation Rating and Inspection Bureau, also known as CRIB. CRIB uses annual information and statistics about workplace accidents across industries to set the baseline Workers’ Compensation rates for companies in specific industries based on employees’ responsibilities. For example, workers in retail will have a corresponding Workers’ Compensation rate, as will employees that do various kinds of plumbing work.
This is what sets the baseline costs of insurance policies, which will vary from industry to industry. Then, the specific quirks of your individual company will come into play. For example, if your company frequently sees workplace accidents, its Workers’ Compensation costs will likely increase. If your company is new, its premiums might rise from the baseline for several years. And, if your company has a large payroll, the amount it pays for workplace liability insurance might differ from similar companies with smaller payrolls. Because all of these factors are not set in stone, neither are Workers’ Compensation costs in New Jersey.
How Can I Know if My Company’s Workers’ Comp Costs Too Much in New Jersey?
Since Workers’ Compensation costs can vary so much among companies, including those in similar industries, it can be difficult for business owners to know if they are paying too much for workplace liability insurance.
To make sure you are not exceeding your budget for insurance, our New Jersey Workers’ Compensation insurance brokers can match you with a reliable carrier that doesn’t unnecessarily hike up prices. To start assessing your current plan, consider your company’s CRIB rating. Suppose what you’re paying for Workers’ Compensation is much higher than the baseline rate determined by CRIB, and your insurer cannot explain any valid reason for the increase, such as many workplace accidents. In that case, you may be paying too much for insurance. Make sure the CRIB rating your insurer is using is accurate, based on your company’s operations and employees’ responsibilities.
Workers’ Compensation insurance costs money. Companies pay a premium to insurers to protect them in case a worker is injured on the job. While it can seem unnecessary to pay for Workers’ Compensation in some instances, it is not. The alternative is being hit with excessive fines from the Division of Workers’ Compensation in New Jersey, which might add up to thousands of dollars. Fines will likely be far more expensive than what you might have paid for Workers’ Compensation, had you gotten insurance.
What Can I Do to Lower the Cost of My Company’s Workers’ Comp in New Jersey?
If you feel as though your company is paying too much for Workers’ Compensation and want to lower the cost of its insurance, there are several ways you can do so in New Jersey. These include getting pay-as-you-go Workers’ Compensation insurance and prioritizing safety in the workplace.
Get Pay-as-You-Go Insurance
One of the cheapest ways to maintain Workers’ Compensation while still adhering to state requirements is by getting pay-as-you-go-insurance. Our brokers have relationships with carriers that offer this type of coverage to companies in various industries, including those in high-risk industries. Pay-as-you-go Workers’ Compensation allows your insurance premiums to fluctuate as your payroll does. This can result in lower premiums for certain months when your company’s workforce might be smaller. The result is more accurate Workers’ Compensation premiums that are calculated based on real-time payroll numbers as opposed to annual estimates.
Prioritize Workplace Safety
The biggest reason for increases in Workers’ Compensation costs is having an accident-prone workplace. If companies, even those in high-risk industries, can prove that they prioritize workplace safety, their insurance premiums might start to decrease over time. Enrolling in New Jersey’s drug-free workplace program is a great way to do this. This can allow employers to drug test workers following an on-the-job accident, which can illuminate possibly fraudulent Workers’ Compensation claims, avoiding the need for their insurers to pay out benefits to certain employees. Enforcing a drug-free workplace can also reduce the number of workplace accidents that occur, as using illicit substances at work is a common cause of employee injuries. Another tactic that can have a similar impact on Workers’ Compensation premiums is increasing managerial oversight and requiring regular training so that employees are less likely to act negligently while working, reducing the frequency of workplace injuries in New Jersey.
Call Our Brokers for Workers’ Comp in New Jersey
Call our New Jersey Workers’ Compensation insurance brokers at (866) 340-9120 to get a policy quote from NPN Brokers.
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