Is Workers Comp Insurance Required in New Jersey?

Workers Comp Insurance

Each state has its own set of workers comp rules and regulations. New Jersey is no exception. in fact, the state requires coverage for most entities doing business within its borders. When you manage a business that is located or operates in the state, it is important to perform research into who must carry workers comp in New Jersey.

What NJ Businesses Must Carry Workers Comp Coverage?

New Jersey has pretty stringent workers comp regulations. All businesses that have paid employees must carry coverage for workers comp in New Jersey. That includes:

  • Sole Proprietorships
  • Partnerships
  • Limited Liability Companies
  • Corporations

Are There Any Exemptions?

As mentioned earlier, there are a few very limited exceptions to New Jersey’s worker’s compensation requirements. For example, sole proprietorships, partnerships, and LLCs that do not have employees may not be required to carry workers comp in New Jersey.

There is also a self-insurance exemption. Certain businesses may apply to the Commissioner of the Department of Banking and Insurance for the right to self insure. This allows them to either manage claims in-house or through a private third-party administrator.

While there may be cases where your New Jersey business is not required to carry workers comp coverage on employees, it is an important part of any overall risk management strategy. Always talk to financial and legal advisors before making a decision about whether or not you should have coverage.