New Jersey brokers should be ready for this revenue opportunity with privatized NJ TDB


Did you know that 98 percent of NJ TDB temporary disability benefits policies are written by the state?

Even though privatized TDB provides better service and faster payouts than state-funded temporary disability insurance in New Jersey, most business owners don’t know privatized TDB is an option for themselves and their employees.

For New Jersey brokers, this represents a tremendous opportunity for increased revenue. Even though commissions may not be as high as carriers offer for some other types of insurance, including ancillary benefits, the total commissions can add up over time.

NJ TDB is a mandatory benefit, and once a broker has a company signed up for privatized TDB, they are likely to continue renewing year after year, providing largely passive income for brokers.

And the State of New Jersey now has legislation in the works which could make it even easier for brokers to help their customers privatize their TDB.

Why Privatized TDB?

Based on NJ temporary disability benefits law, any private TDB coverage must be equal to state-funded benefit amounts and duration of payments and have the same (or more liberal) eligibility requirements as the State Plan all at the same rates or better.

In addition to equal payments, which private NJ TDB must offer by law, many privatized plans also have faster service, payment choices in the form of direct deposit or a debit card, and an easier claims process.

The state of New Jersey is struggling to keep up with claims.

It often takes as long as four weeks from the date the claim is filed to begin paying claimants. In some cases, employees are back to work before they even begin to receive their disability benefits.

Often, this results in an already-overworked HR department spending time to help employees chase down their benefits. It can also affect employee morale and retention rates within a company.

No Signatures Required?

Currently, to switch to a private TDB insurance plan in New Jersey, employers must get signatures from 50 % + 1 of the employees in a company before making the switch.

But the New Jersey State legislature has introduced a new bill that would waive the signature requirement for employers to switch to privatized TDB.

This eliminates one stumbling block brokers now face in getting their customers to switch their NJ TDB policies to a private carrier.

Customer Education Is Key

Private TDB insurance offers equal (or better) benefits, faster payout times, and less red tape for employers, all at the same rates as the State Plan.

If someone were to offer you an equal or better product at the same price, wouldn’t you accept it?

If the State of NJ waives signature requirements to switch TDB to a private carrier, it removes the last stumbling block for acceptance.

But the responsibility will rest with brokers to let their customers know that privatized TDB is an option, that it is easier to obtain than ever before, and that it can vastly improve the level of service businesses receive when it comes to TDB claims.

What Brokers Can Do

As January 1 approaches and employers begin renewing their TDB policies and getting ready to sign on for another year with the state, brokers in New Jersey should write to their legislators and request that the state waive the signature requirement for switching to a private TDB carrier.

Then, begin a campaign to let your customers know private TDB is an option.

Use email marketing, blog posts, social media, webinars, and printed handouts to spread the word. Network at local business events. Write an article for your local paper.

The market is wide open, with 98 percent of New Jersey businesses still writing their TDB coverage with the state. It’s your turn to carve a slice of that pie.

Reach out to existing customers who write their other insurance lines with your company and let them know you can offer them a better product at the same price the state of New Jersey offers. Use your reputation for white-glove customer service to sell TDB.

And let DBL Center help manage your TDB accounts, putting commissions in your pockets with a minimum of work on your part.

Need help getting your customers to switch?

DBL Center provides white-label, white-glove, concierge-level service to help brokers earn more.

Reach out to us today.