What types of insurance am I required to provide for my employees?
There are certain types of insurance that all small businesses should have, such as fire, general liability, automobile liability, automobile physical damage and automobile collision.
Employers are not required under state law to provide health insurance. However, it is still highly advised that you do so.
The only “insurance” that state law requires most businesses (except for sole proprietorships and single member LLCs with no employees) to pay into is Worker’s Compensation.
If you have employees you are required to provide workers’ compensation and employer liability.
Employee life and health insurance are optional. Other important insurance coverage includes fidelity bonds, surety bonds, income insurance, property insurance (often referred to as casualty insurance) and business interruption insurance. Depending on your type of business, there are other forms of insurance coverage available. Check with your insurance agent to see what is applicable to you.
New Jersey Individual Health Coverage Program and Small Employer Health Benefits Program
20 West State Street, 10th Floor
P.O. box 325
Trenton, NJ 08625-0325
Automated Hotline: 800-446-7467
The state has taken dramatic steps to make health insurance more accessible and affordable for New Jersey employers.
Since new laws took effect in 1994, health insurance coverage for self-employed individuals has been offered on a guaranteed issue, guaranteed renewable, community rated basis. Coverage for small business employers with 2-50 employees working 25 hours per week or more has been offered on a guaranteed issue, guaranteed renewable, modified community rated basis.
This means that self-employed individuals and small business employers can obtain and keep good, affordable health coverage regardless of their own or their employee’s health status, age, or claims history.
The state distributes free Buyer’s Guides, which describe the plans available and answer commonly asked questions to help employers shop for health coverage. Buyer’s Guides, premium rate information and a list of participating carriers and their toll-free numbers may be obtained by calling:
- Individual Health Coverage Program (Self-employed individuals): 800-838-0935
- Small Employer Health Benefits Program: 800-263-5912
- Or on the Web site at www.dobi.nj.gov Employers with 20 or more employees, who offer health benefits to their employees, must also offer continuation of coverage under federal law, commonly referred to as “COBRA.” State continuation of coverage is available to employees of small business employers (2-19 employees) who are not subject to COBRA. Pursuant to New Jersey law (N.J.S.A. 17B: 27A-27), small business employers must offer employees the option to continue their group health coverage when an employee is terminated, goes to part-time status, or ends employment.
Employers of one or more persons, with certain exceptions, are required to participate in the federal-state program to provide unemployment insurance for idled workers. In New Jersey, employers are liable for worker contributions that may be withheld from wages. Contributions must be reported and paid every three months to the New Jersey Employment Security Agency. For information call 609-659-9045.
Unemployment Insurance: If you have at least one employee, registration is required with;
Division of Employer Accounts, New Jersey Department of Labor and Workforce Development,
PO Box 913,
Trenton, New Jersey 08625- 0390.
For information in North Jersey call (Newark) 973-648-4109, in Central Jersey (New Brunswick) 732-418-3331, and in South Jersey (Camden) 856-614-3764.
Temporary Disability Insurance
The Temporary Disability Benefits Law protects against wage loss suffered because of inability to perform regular job duties due to illness or injury. You, the employer, are required to pay disability insurance taxes and to give the Division of Temporary Disability Insurance certain information about your employees when they file claims for disability benefits.
Employers may select coverage under the state plan or a private plan.
As a subject employer, you may establish a private plan for the payment of disability benefits in place of the benefits payable under the State Plan. Such private plans may be contracts of insurance issued by authorized carriers, by employers as self-insurers, or by agreements between unions and employers.
The state plan, which is similar to the unemployment compensation program, requires contributions to be made by employers and covered workers into the State Disability Benefits Fund. Reports and contributions are remitted quarterly to the New Jersey Security Agency. All employing units, whether subject to the contribution provisions or not, are required to file status reports with the Department of Labor and Workforce Development, Office of the Comptroller.
Workers’ Compensation Insurance
New Jersey law requires that all New Jersey employers, not covered by Federal programs, have workers’ compensation coverage or be approved for self-insurance. The exception is “casual employment,” which is a job done under circumstances rare in this state.
Also, certain occupations are covered under federal law rather than state law. Workers’ compensation benefits include cash payments and medical or hospital services provided to workers or their families (in case of death) who sustain a job-related injury or illness.
There is no cost to the workers in the form of salary deductions. The Division of Workers’ Compensation administers this program and maintains a system of administrative courts to provide hearings and adjudication of workers’ compensation claims.
Employers may obtain coverage from any private company authorized to write workers’ compensation or employer liability insurance in New Jersey. This insurance may be obtained through private insurance brokers or agencies.
For further information contact:
Department of Labor and Workforce Development
Division of Workers’ Compensation
P.O. Box 381
Trenton, NJ 08625-0381
For coverage information, contact your insurance provider, or the Compensation Rating and Inspection Bureau (CRIB) at:
60 Park Place
Newark, NJ 07102,