Frequently Asked Questions for Employers / Insurance Carriers
Browse Workers’ Compensation frequently asked questions for employers and insurance carriers below. Please note that these responses are intended to provide you with general guidelines and information and are in no way meant to replace legal advice.
You should report all work-related injuries/illnesses directly to your WC carrier or Third Party Administrator who in turn must file the necessary forms with the New Jersey Compensation Rating & Inspection Bureau (NJCRIB) in an electronic format.
The Uninsured Employers Fund was established to make payments of medical expenses and temporary disability benefits to injured workers whose employers failed to provide the required Workers’ Compensation insurance coverage and who fail or refuse to make Workers’ Compensation benefit payments as awarded. Payments for permanent disability are not made by the Fund.
When a formal Workers’ Compensation claim is filed with the Division of Workers’ Compensation and the employer is found to be uninsured, a motion to join the Uninsured Employers Fund is submitted by the worker or his/her attorney. If an award is made for temporary disability benefits and/or medical expenses, the Uninsured Employers Fund will make payment of the temporary disability benefits and reasonable and customary medical expenses included in the Judge's Order.
Before any payments are made from the Fund, liens in the amounts of any payments that may be made from the Fund are docketed against the employer in the Superior Court. Although not payable by the Fund, any permanent disability benefits awarded and unpaid by the employer are also docketed on behalf of the injured worker. In addition, the employer is subject to a penalty of up to $6,000 after an award has been unpaid. This amount is also docketed against the employer in the Superior Court.
While the Fund does not pay permanent disability benefits, any such award is docketed with the Superior Court as a lien against the employer. This lien may be prosecuted by the injured worker or his/her attorney for collection should the employer assets be located.
Failure to provide the required insurance is a disorderly persons offense and, if the failure was willful, a crime of the fourth degree. In addition, penalties for failure are assessed at up to $5,000 for the first ten days and up to $5,000 for each ten-day period thereafter. Penalties are docketed as liens against the employer in the Superior Court and collection action is taken to prosecute those liens through seizure of property.
The Compensation Rating & Inspection Bureau of the Department of Banking & Insurance is responsible for rate setting matters for workers’ compensation. They can be reached by calling (973) 622-6014 or by visiting their web-site at www.njcrib.com.
Possibly. That decision is made by the Department of Banking & Insurance. Approval generally depends upon the ability of the entity seeking self-insured status to demonstrate assets sufficient to cover all potential claims for work related injuries. For more information in this regard, please refer to NJSA 34:15-77 of the NJ Workers’ Compensation Statute or contact the Department of Banking & Insurance at (609) 292-5350 ext. 50099.