New Jersey Workers' Compensation Rates to Go Down 5.3% on 1/1

From our friends at the workcompcentral.com...

Friday, November 16, 2018

Insurance Commission Approves Rate Decrease of 5.3%

The New Jersey commissioner of banking and insurance has approved an overall 5.3% decrease in workers' compensation rates, effective Jan. 1.The reduction is the third straight annual decrease, and will likely be seen as good news by employers. New Jersey has consistently ranked as one of the most expensive for workers' compensation insurance, according to the 2018 Oregon Department of Consumer and Business Services' premium ranking report, which came out in October.The New Jersey Compensation Rating and Inspection Bureau said in a circular this week that the 2019 decrease is based on experience and the trend toward fewer claims, although an increase in maximum weekly benefits will increase costs slightly.The manufacturing sector will see the biggest decline, with an average rate decrease of 8%, the bureau said. Office and clerical will see a 7.5% drop, followed by maritime and rail workers, at 5.5%There will be no change to catastrophe provisions, but the minimum premium multiplier will increase, from 170 to 180."The change to premium resulting from the new minimum premium multiplier is minimal and does not impact the overall rate level," the circular noted.

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