New Jersey Workers' Compensation Insurance

New Jersey had 134,580 reported accidents in 2015, which is nearly half of 1994—the highest report year—when there were 237,200 injuries.

This may be in part because the state has strict regulations for businesses, and some of the highest work comp rates in the nation. All New Jersey employers must have workers’ compensation coverage.

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Small Business Work Comp Requirements in New Jersey

Unless covered by a federal program, all New Jersey business owners with employees must carry workers' compensation insurance. Unlike some states, this includes agricultural workers, domestic workers and corporate officers.

It also applies to full-time and part-time employees, and lawfully or unlawfully employed workers (such as minors or undocumented workers).

Owners: Corporate officers must be covered, but partners or members of an LLC and the principal owner of a sole proprietorship do not need coverage.

Contractors: If you are an independent contractor, you might not be covered by the hiring company’s insurance policy and may need to provide proof of work comp. If you’re an employer, here are 10 ways to tell whether a worker might be classified as an employee or independent contractor. But keep in mind that the New Jersey Workers’ Compensation Act applies a liberal interpretation of an “employee” that may be broader than other state or Federal definitions.

The New Jersey Division of Workers’ Compensation notes that an independent contractor acting as an employee may need to be covered, regardless of their tax classification or contract with the employer.

How to Buy Small Business Workers’ Compensation Insurance

New Jersey has a private market. You can purchase a workers' compensation policy from any private insurance carrier or agency that is licensed to write in that state. Get started on a policy with WorkCompOne >>

New Jersey does not have a state fund that offers workers’ compensation insurance. If you’re still having trouble finding coverage, you can contact New Jersey’s assigned risk pool, which will place you with a carrier.

Coverage and Rates in New Jersey

New Jersey is a base rate state; state law mandates rate changes across insurance providers. Instead of price shopping, buyers should look for an agent that provides the highest quality, convenience and service.

Unlike most states, which use the National Council on Compensation Insurance (NCCI) to collect workplace data and set rates, New Jersey has its own rating bureau, the New Jersey Compensation Rating and Inspection Bureau (NJCRIB). The agency, part of the New Jersey Department of Banking and Insurance, is responsible for setting regulations and premium rates for workers’ compensation insurance.

New Jersey has one of the highest workers’ compensation rates in the country. Ultimately, your industry, payroll and past coverage and claims are all factors in how much your premium will cost. Learn more about workers' comp insurance rates >>

When seeking a workers’ compensation policy, small business owners can contact a licensed insurance agent or carrier. The insurance carrier calculates the final premium cost based on the set rate, the company’s payroll, its Experience Modifier, and any additional credits or debits based on the company’s workplace safety.

New Jersey Work Comp Resources

Editor's note: Last updated on May 1, 2018

Here's What You Need to Get Started

To buy workers compensation insurance, you need to request a quote from a licensed insurance agent and provide some details about your business.

Here’s what to have in front of you:

  • Number of employees in each class code.
  • Total payroll for all employees. You may be able to exclude yourself if you don't wish to be covered under the policy. 
  • Federal ID Number. If you are a sole proprietor, you can use your Social Security Number.
  • Copy of your workers comp insurance policy, if you've had coverage or claims in the past few years. If you know your company's experience mod, please have your experience mod rating sheet or policy in front of you. Otherwise, you will be assigned a default rating of 1.0.

The information on this page has been interpreted and summarized for your convenience. Please consult your state's governing authority for the most current and complete legislation.