As an employer, it is your responsibility to protect your employees from expenses associated with on-the-job injuries by purchasing a solid workers’ compensation policy. When it comes to NJ workers’ compensation rates, overall rates typically stay the same, but some individual coverage differences can sway the rates slightly.
Probably the biggest predictor of your rate change is going to be your claims history. If you have made a lot of claims in the last two years, your premiums will inevitably go up. Minimum and maximum weekly benefits have changed slightly, but long-term injuries can fall anywhere in that range, which can affect how much the plan costs you. To offset rising costs of the possibility of terrorist or catastrophic event payouts, each unit may see an increase of 1-3 cents. Finally, general expenses and adjustment expenses, along with various funds like the Second Injury Fund or the Uninsured Employers’ fund can account for a moderate raise in the cost of your policy.
NJ workers’ compensation rates may rise slightly with each renewal, but there is a reasonable explanation for those increases. Your provider can discuss reasons for the rate change and answer any further questions you may have. Ultimately, your commitment to protecting your employees from the high cost of medical expenses and lost wages can make small rate changes seem relatively insignificant.