What is New Jersey Temporary Disability Benefits Coverage?
Under the New Jersey Temporary Disability Benefits Law, all covered employers in New Jersey must provide
temporary disability coverage to their employees. Disability benefits provide temporary cash benefits payable
when a covered individual is disabled as the result of an accident or sickness not arising out of and in the course
of the individual’s employment resulting in the individual’s total inability to perform the duties of employment.
As an Employer, Do I Have This Coverage Today?
If you have received a Notice of Employer Contribution Rates from the New Jersey Department of Labor and Workforce
Development Employment Security Agency, and that form has a Final Disability Insurance Rate between .10% and .75% your
coverage is currently with the State Plan.
What is the "Notice of Employer Contribution Rates"?
The Notice of Employer Contribution Rates is a form the New Jersey Department of Labor and Workforce Development
Employment Security Agency mails to you at the end of every State fiscal period (current fiscal period 07/01/2023 – 06/30/2024
). This form details the historical contributions and benefits paid under your Federal ID # since you began doing business
in the state of New Jersey. The form also shows the current Unemployment Insurance and Disability Insurance rates the State is
charging you.
Why am I covered by the State of New Jersey for Disability
Benefits Coverage?
When an employer registers to do business in New Jersey, their state mandated Temporary Disability Benefits coverage
automatically defaults to the New Jersey State Plan coverage.
Do I have an option to have my New Jersey state mandated
Disability Coverage with a Private Carrier?
Yes. The State of New Jersey allows any covered employer to establish a Private Plan of disability benefits in lieu of the
benefits of the State Plan established. Arch Insurance Company is approved to write Private Plans for disability benefits
in New Jersey.
Why would an employer want to move their coverage from the
State Plan to a Private Plan?
Arch can offer savings to employers for their required Disability coverage. Additionally, employees benefit from an Arch Plan
because on average Arch makes a claim determination within 4 days while the State makes a claim determination on average
within 14 days. Therefore, eligible claimants who are out of work receive their benefits sooner when they have an Arch Private
Plan. Arch also offers exceptional and personalized customer service to our policyholders and claimants.
Does it cost employees more money to participate in a Private Plan?
No. The State of New Jersey does not allow employers to deduct any greater amount in contributions from their employees
regardless of whether coverage is with the State Plan or a Private Plan Carrier.
What are the requirements to set up a Private Plan?
The State of New Jersey requires that an employer complete an application form and conduct an employee written election to
move from State to Private Coverage. A majority of the employees in the class or classes to be covered thereby must agree to
move to the Private Plan.
Must I Mail the Application and Election Form to Arch,
Why Can’t I Fax or Email?
Yes, you must mail these forms to Arch. Arch will file the application form and employee consent form(s) with the State of
New Jersey on your behalf. The State of New Jersey requires original signed documents.
Why must I complete the election form?
Because employees contribute to the cost of state Disability coverage, the State requires that the majority of those
employees consent to a coverage move to a Private Carrier.
How many employee signatures to I need to have on the election form?
Under State law, a majority (more than 50%) of employees must sign the consent form to move to Private Plan coverage.
Will my coverage be different under an Arch Private Plan?
No. Under State law, Arch must provide the same benefits to your employees that they are receiving through State Plan coverage.
How will I know I have a policy with Arch?
Arch will e-mail an electronic file to you. Which will contain your policy and all other required documents.
Do I need to notify the state that I’m moving my coverage to Arch?
No. Arch will notify the State of the coverage move. The State will then approve the Arch Private Plan and send the approval
certificate to you.
When will I be billed for my policy?
Arch will send bills to you quarterly in arrears. The Arch billing cycle is the same as State of New Jersey cycle.
How do I place a claim?
Any claims that begin during your Arch coverage period should be mailed or faxed to the Arch claim handling center.
The State of New Jersey will be responsible to handle any claims that fall within their policy period until claim completion.
Send claims to:
Arch Insurance Company c/o Administrative Concepts, Inc
PO Box #C1024
Southeastern, PA 19398-1024
Phone: 877-369-0979 fax: 610-977-3216
Email:
archdbl@visit-aci.com
Who can I call with questions?