Types of Workers’ Compensation Insurance Coverage in New Jersey

For the more than 30 years, Richard Sasso has practiced law through his own office in Warren, New Jersey. Building upon more than three decades of legal experience, Richard Sasso handles a variety of real estate and business matters, including workers’ compensation matters for insurance companies and self-insured companies.

Any employer in New Jersey must provide its employees insurance coverage if the employer is not covered by a federal program. This coverage can be obtained through self-insurance or a workers’ compensation insurance policy. 

Workers’ compensation insurance policies are written by stock or mutual carriers authorized to do so by the state of New Jersey. These plans feature different premiums depending on an employer’s payroll and their claim experience. Further, the classification of employees’ work affects the premiums of a workers’ compensation insurance policy.

Meanwhile, self-insurance is obtained by applying to and earning approval for self-insurance from the Commissioner of the Department of Banking and Insurance. During the approval process, the commissioner evaluates an employer’s financial ability to meet the legal obligations of an insurance policy for employees and the expected lifespan of the business. 

Once an employer has been approved for self-insurance, the business can administer workers’ compensation claims itself or request these services from a third-party administrator.