Division of Purchase and Property
Bureau of Risk Management
Administrative Units

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RISK UNIT - The Risk Unit is responsible for the identification, controlling, financing, measuring loss exposures, procurement of insurance for property and aviation exposures and providing technical advise on insurance matters to State agencies. The telephone number for the unit is (609) 984-0123.

WORKERS' COMPENSATION UNIT - The State of New Jersey is self insured for Workers' Compensation pursuant to N.J.S.A. 34:15 and all such matters are handled by the Bureau of Risk Management.

Workers' Compensation is remedial social legislation to insure that employees injured on the job will be paid without regard to fault. The effect of the compensation statute on the covered employee is to take away his or her common-law remedies against the employer and to substitute in their place a remedy that requires the employer to pay the compensation benefits stipulated in the statute. The right to pay the compensation is the covered employee's exclusive remedy against the employer.

The law provides for a system of benefits in the form of authorized medical treatment, wage replacement and for permanent partial or permanent total disability payments. The Bureau processes, investigates and adjusts approximately 14,000 claims a year and has 4,000 litigated claims pending. For FY95, $28,000,000 was spent in medical, temporary and permanent disability benefits. The telephone number for the Workers' Compensation unit is (609) 292-3475.

TORT UNIT - Liability claims against the State of New Jersey are handled through the Bureau of Risk Management. Title 59, Claims Against Public Entities, better known as the New Jersey Tort and Contractual Liability Act, represents the legislative response to a New Jersey Supreme Court decision which abrogated the doctrine of sovereign immunity to tort claims. Its purpose was to re-establish immunity of all public entities in New Jersey, on a basis more coherent and equitable than in the past.

The State of New Jersey is self administered for Tort claims and all such matters are handled by the Bureau of Risk Management. Litigation support is handled by the New Jersey Department of Law and Public Safety. Approximately 5,000 Notices of Claim are filed with the Bureau on an annual basis. Investigations are conducted by the Bureau to determine liability and damages pursuant to the defenses found contained within Title 59.

For FY 95, approximately 5,000 claims were filed. $8,000,000 was spent in settlements and related expenses. The telephone number for the Tort Unit is (609) 292-1850.

AUTO LIABILITY UNIT - Auto liability claims are handled by the Bureau of Risk Management pursuant to the dictates of Title 59. Claims processing and investigations are provided by a Third Party Administrator and litigation support is provide by authorized outside counsel. Approximately 2,000 claims are filed annually. There are 535 open litigated claims pending. In FY95, $4,400,000 was spent for settlements, outside counsel and administrative expenses. The telephone number for the Auto Unit is (609) 292-1850.

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