Privatize NJ Temporary Disability Insurance: As Easy as 1-2-3


Have your customers privatized NJ temporary disability insurance for potential cost savings and superior customer service?

As we reported in October 2018, the State of New Jersey waived the signature requirement for business owners to obtain privatized New Jersey TDB coverage. This opened the door for brokers to write privatized NJ temporary disability insurance to provide customers with:

  • Potentially lower rates when bundled with other coverage
  • Superior customer service from a private carrier
  • Faster payouts, choice of payment methods
  • Choice of carriers
  • Easier claims process
  • Less red tape

By law, premiums must be the same or lower than NJ temporary disability insurance written through the state. At the same time, benefits packages for New Jersey TDB must be the same as – or better – than state benefits.

State Increases Premiums for NJ Temporary Disability Insurance

New Jersey has always had a robust disability benefits package. In January 2020, New Jersey TDB payouts increased to 66.67% of a worker’s average weekly salary, up to $667 per week through June 30, 2020.

As of July 1, 2020, the benefit grows to 85% of a worker’s average weekly salary, capped at $881 per week.

With these benefit increases come a change in premium payments, too.

Employees now contribute .26% on the first $134,900 of earnings, with a maximum annual contribution of $350.74. Employers have a different taxable wage base than employees. Employers contribute based on employees’ earnings, with a cap of $35,000.

Is It Time for Business Owners to Privatize New Jersey TDB?

If your customers have not privatized New Jersey TDB yet, now’s the time. The next deadline to shift policies from New Jersey TDB written by the state to a private plan takes place June 15, 2020.

We can make it easier than ever for you to help your clients privatize New Jersey TDB – and grow your book of business with a statutory benefit with automatic renewals.

Just follow this simple, three-step process.

1. Instruct your customers to obtain form AC-174.

Brokers can no longer download the AC-174 form for their customers, and your insurance wholesaler also can’t provide it for you. Employers first must visit the New Jersey Department of Labor website and fill out the Employer Application.

This form replaces the previous TWES form. If your customer has already registered, they can go here to log in. From either location, they can download the AC-174 form and fill it out.

The census can help you obtain an accurate quote so there are no surprises for your customer when premiums are due.

2. Provide the AC-174 to DBL Center so we can shop policies through our network of top-rated carriers.

The DBL Center does all the work for you from here. We will shop policies and leverage our industry relationships and volume to find the lowest premiums. You may find your customers can save even more by bundling New Jersey TDB with ancillary benefits like vision, dental, and life insurance.

3. Write the policy and track your commissions through our Broker Dashboard: Net Revenue Tracker.

Once we’ve secured the best coverage and lowest rates we can find for your clients, it will be an easy sell. After all, what business owner would want to pay more through the state and miss out on concierge-level service and faster payouts?

New Yorkers have benefited from private statutory benefits for years. It’s time New Jersey business owners enjoy the same flexibility and superior service they can get from The DBL Center and our dedicated New Jersey rep and brokers.

Let us help you write the policies for your New Jersey clients. You’ll gain access to our proprietary Broker Dashboard: Net Revenue Tracker, where you can track your commissions, renewals, and pending cancellations to improve customer retention. You’ll be able to view your book of business at a glance and access carrier portals with a click.

The world seems to be changing here in the Northeast U.S. every day. The service you receive from The DBL Center is one thing you can always count on.