2001 New Jersey Workers’ Compensation Coverage

2001 NEW JERSEY WORKERS’ COMPENSATION COVERAGE

Part One — Workers’ Compensation insurance agrees to pay the benefits required under the Workers’ Compensation law.

Part Two — Employers’ Liability insurance provides coverage for your legal liability to employees not covered by the Workers’ Compensation law.

You may subcontract certain operations. Compensation laws provide that the principal contractor is responsible for compensation to the employees of uninsured subcontractors.

In determining compensation premiums, you will be charged a premium for coverage in connection with employees of subcontractors, unless the subcontractors have insured this obligation and have furnished satisfactory evidence of such insurance. For your protection, you should obtain certificates of insurance from all subcontractors doing work for you.

The policy is written subject to audit, and payroll records should be kept in such a manner as to show any overtime paid. For audit premium purposes, you would only report two-thirds of the overtime paid.

For premium purposes in 2001, executive officers’ remuneration is limited to a maximum coverage of $1,610.00 and a minimum of $400.00 per week. To minimize your premiums, you should make sure your payroll records identify executive officers.

Effective January 1, 2001, the new maximum weekly benefit with respect to all types of injuries is increased from $568.00 to $591.00. The minimum weekly benefit, except with respect to permanent partial disability, is also increased from $151.00 to $158.00.

New Jersey rates have been revised effective January 1, 2001, to reflect these increased benefits and most recent loss experience. The new rates also include a complete adjustment of classification rate relativity based on the latest available classification experience data.

Coverage is now available for sole proprietors and partnerships.