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Written By:  Kevin J. DiMedio, Esq.

Earp Cohn P.C.

Philadelphia, Pennsylvania

Every year the Compensation Rating and Inspection Bureau (CRIB), the state authority that manages workers compensation insurance in New Jersey, publishes new rates for all business classifications.  For 2012, most classifications (80%) will see a rate increase of some amount over last year (6.9% on average), with the construction classifications seeing larger increases (10.9%).  For many businesses, reports show that workers compensation insurance represents 30-40% of a business’s total property\casualty insurance expense.  The effect of these rate increases will certainly impact profitability.  Some in the insurance industry have maintained that “comp is comp” when addressing costs of insurance (meaning you cannot control costs for State regulated insurance).  However, as workers compensation premiums are a significant cost of any business insurance program, owners should seek to minimize same by considering the following:

• Review of business classifications with current employee job functions

• Improve workplace and\or jobsite safety practices to minimize claims

• Improve job skill training about inherent job and operations risks

• Apply for the construction credit program (construction classification)

• Review “experience modification” worksheet for current date

• Prepare workers comp audit prior to meeting with insurance company

• Obtain certificates of insurance from subcontractors prior to any work


For more information about Earp Cohn P.C., please visit or the International Society of Primerus Law Firms.

Contact Kevin at 856-354-7700 or to discuss and review your business insurance matters.

DISCLAIMER: This advisory is for general information purposes only. It does not constitute legal advice, and may not be used and relied upon as a substitute for legal advice regarding a specific legal issue or problem. Advice should be obtained from a qualified attorney licensed to practice in the jurisdiction where that advice is sought. ATTORNEY ADVERTISEMENT: Before making your choice of attorney, you should give this matter careful thought. The selection of an attorney is an important decision.  If this information is inaccurate or misleading, you may report this to the Committee on Attorney Advertising, Hughes Justice Complex, CN 037, Trenton, New Jersey 08625.