New Jersey Workers Compensation Insurance-Workmans Compensation

New Jersey Workers Compensation Insurance Rules

New Jersey Workers Compensation

1. Does my New Jersey business need workers compensation insurance?

New Jersey law requires that all New Jersey employers, not covered by Federal programs, have workers’ compensation coverage or be approved for self-insurance. Even out-of-state employers may need workers’ compensation coverage if a contract of employment is entered into in New Jersey or if work is performed in New Jersey. Approval for self-insurance is based upon the financial ability of the employer to meet its obligations under the law and the permanence of the business.

2. In New Jersey who can exempt themselves from Workers Compensation Insurance?

Sole proprietors , partners and LLC's are exempt from workers' compensation coverage. However, they may elect to obtain a workers' compensation insurance policy.

3. Does New Jersey workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

There are no distinct guidelines for sub-contractors/contractors regarding workers' compensation insurance.

Corporations – All corporations operating in NJ must obtain workers' compensation insurance coverage or be approved for self-insurance as long as any one or more individuals, including corporate officers, receives compensation for services to the corporation. There is no minimum payroll or single-officer exemption.

Partnerships/LLC's – All partnerships and Limited Liability Companies (LLC's) operating in NJ must obtain workers' compensation insurance or be approved for self-insurance as long as any one or more individuals, excluding partners or members of the LLC, receives compensation for service. There are no exclusions for family members or minimum payroll.

Sole Proprietorship – All sole proprietorships operating in NJ must obtain workers' compensation insurance or be approved for self-insurance as long as any one or more individuals, excluding the business owner, receives compensation for service. There are no exclusions for family members or minimum payroll.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act , courtesy of Cornell University.
Click here for: USL&H Web Site - Dept of labor

Read the complete text of the Jones Act here.

New Jersey Workers Compensation

New Jersey Workers Compensation Links

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New Jersey Workers Comp. Statutes
New Jersey Workers Compensation Forms
New Jersey Chapter 235 Rules
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