November 27, 2013

Workers compensation and employers liability rates have been approved for a 3.6% increase in New Jersey effective January 1^st.

Classifications are limited to a maximum 15% increase over the current year’s rate. Minimum premium will also increase from $850 to $900 and New Jersey employers will have to pay a 6.56% surcharge to finance the state's Second Injury Fund.

This announcement comes on the heels of an increase in weekly maximum benefit from $826 to $843, all contributing to a continuing hardening market and higher premiums for employers in New Jersey. Brokers must be wary of all these factors that may have their clients scrambling for cheaper quotes. Brokers who offer their clients value-added services, such as workers compensation premium recovery, will find that they will maintain their clients despite the higher rates and increase their book of business as well.