If you’re injured or become ill due to your job, you could qualify for workers’ compensation benefits in New Jersey. These benefits cover medical treatment, disability payments, and even death benefits for your family if the worst happens.
Under New Jersey law, any business that employs workers must have workers’ compensation insurance. If you’re a New Jersey business owner, it’s important to be aware of the workers’ comp laws in New Jersey as they may differ from the laws of another state.
How Does Workers’ Comp Work in New Jersey?
Workers’ compensation insurance in New Jersey covers employees who get sick or injured while working. The coverage pays for expenses like medical bills, lost wages and disability benefits, regardless of who’s responsible.
Workers’ comp insurance not only covers employees but also prevents business owners from paying costly lawsuits since employees typically can’t sue their employers for work-related injuries when this insurance is in place.
If you get hurt or sick on the job, your employer will submit a claim for you. Once it’s approved, you’ll get the medical care you need and compensation for lost wages while you can’t work.
By New Jersey law, every business in the state that has even one employee (aside from the principal owner) must have workers’ compensation insurance.
Who Needs Workers’ Comp Insurance in New Jersey?
Here is a look at the different types of New Jersey businesses that are required to carry workers’ compensation insurance in New Jersey:
- All corporations must maintain workers’ compensation insurance for their employees.
- Partnerships and limited liability companies operating in New Jersey must have workers’ compensation coverage for their employees, but this coverage can exclude partners or members of the LLC.
- Domestic workers and farm workers are covered under the workers’ compensation law in New Jersey.
Do You Need Workers’ Comp in New Jersey if You’re Self-Employed?
As long as you don’t have any employees, the state of New Jersey doesn’t require you to buy workers’ comp. This includes partnerships, LLCs and sole proprietors without workers. If you have any employees, however, you’re required to have coverage.
Even if it’s not required, purchasing workers’ comp is a good idea since standard healthcare plans usually don’t cover work-related injuries or illnesses. If you want to be covered under your business’ workers comp policy, speak with your insurance agent about that when you buy the policy.
What Are the Penalties for Not Having New Jersey Workers’ Comp Insurance?
In New Jersey, failing to provide workers’ compensation comes with penalties of up to $5,000 for the first 10 days and up to $5,000 for each additional 10-day period of failing to insure. Keep in mind that even if you file bankruptcy, these penalties cannot be erased.
In addition, if an injury or work-related death occurs without the property coverage in place, the corporate officers, partners or members of the LLC may be personally liable for all related expenses.
Largest Workers’ Comp Insurance in New Jersey
| Rank | Company | Learn more |
|---|---|---|
| 1 | NJM Insurance | Compare rates from participating partners via SmartFinancial’s website. |
| 2 | AmTrust Financial | Compare rates from participating partners via SmartFinancial’s website. |
| 3 | The Hartford | Compare rates from participating partners via SmartFinancial’s website. |
| 4 | Travelers | Compare rates from participating partners via SmartFinancial’s website. |
| 5 | Zurich | Compare rates from participating partners via SmartFinancial’s website. |
| 6 | Liberty Mutual | Compare rates from participating partners via SmartFinancial’s website. |
| 7 | Selective | Compare rates from participating partners via SmartFinancial’s website. |
| 8 | Chubb | Compare rates from participating partners via SmartFinancial’s website. |
| 9 | Old Republic Insurance | Compare rates from participating partners via SmartFinancial’s website. |
| 10 | ICW | Compare rates from participating partners via SmartFinancial’s website. |
What Does Workers’ Compensation Insurance in New Jersey Cover?
In New Jersey, workers’ compensation covers a number of benefits such as:
- Medical benefits. Necessary and reasonable medical treatments, prescriptions and hospitalization services.
- Temporary disability benefits. If an injured worker is disabled for a period of more than seven days, they will be eligible to receive temporary disability benefits at a rate of 70% of their average weekly wage.
- Permanent partial benefits. When a job-related injury or illness results in a partial permanent disability, benefits are available and paid weekly.
- Permanent total benefits. When a work injury or illness prevents a worker from returning to any type of gainful employment, they may be entitled to permanent total benefits. Permanent total benefits are paid weekly and are based on 70% of the employee’s average weekly wage.
- Death benefits. Dependents of a worker who dies because of a work-related injury or illness may be eligible to receive death benefits. Death benefits are weekly payments equal to 70% of the weekly wage of the deceased worker.
Who’s Covered by Workers’ Compensation Insurance in New Jersey?
In New Jersey, workers’ compensation insurance covers most employees, whether you’re full-time, part-time or seasonal. This applies to workers in private companies, nonprofits and even certain government jobs.
If you’re an independent contractor or self-employed, you might need to buy your own coverage, as the state does not automatically provide it.
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Cost of Workers’ Comp Insurance in New Jersey
In New Jersey, the average cost of workers’ comp insurance is $46 per month, according to Insureron.
The cost you pay for workers’ comp insurance depends on several factors, including:
- Employee payroll.
- Where business is located.
- Number of employees.
- Type of industry and its risk level.
- Coverage limits.
- History of previous claims.
Where To Get Workers’ Comp Insurance In New Jersey?
An independent insurance agent or broker can help you obtain workers’ compensation insurance in New Jersey through one of the 400 licensed workers’ compensation insurance companies.
Another option is to self-insure. With self-insurance, a company can either manage its own workers’ comp claims or hire a third party to do it for them.
To become self-insured, a company must apply and get approval from the New Jersey Commissioner of the Department of Banking and Insurance. Whether your business is approved depends on its ability to meet workers’ comp requirements under state law and how long it has been in operation.
How to File a Workers’ Comp Claim in New Jersey
In New Jersey, you should notify your employer as soon as possible about a workers’ comp injury but not later than 90 days from the date of the accident.
You may give this notice to the supervisor, personnel office or anyone in authority at the employer’s place of business. The notice does not need to be in writing.
You’ll typically start receiving benefits within two weeks after filing your claim. If your claim is denied, you can file a formal Claim Petition or request an Informal Hearing with the Division of Workers’ Compensation. After that, you’ll usually get legal representation (provided by your employer’s insurance company) to resolve your claim.
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Workers’ Comp in New Jersey Frequently Asked Questions (FAQs)
How much does New Jersey workers’ comp pay?
If you’re hurt or experience an illness on the job and can’t work for more than seven days, you may be eligible for temporary benefits of up to 70% of your average weekly wage until you can return to work. Keep in mind that your payments won’t exceed the New Jersey yearly limits—$1,159 for 2025 and $1,131 for 2024.
If your injury or illness prevents you from returning to work permanently or finding new employment, you can receive benefits for up to 450 weeks. After that, you’ll need to prove that you’re fully disabled to continue receiving benefits.
What is the statute of limitations for workers’ comp in New Jersey?
New Jersey’s statute of limitations gives you up to two years to file a claim, though it’s best to notify your employer of a work-related injury or illness as soon as possible. The clock starts from either the date of the injury or the last payment of your benefits.
Some issues, like lead poisoning or hearing loss, might not show up right away, so this gives you time to report them when they become noticeable and impact your ability to work.
How long does it take to get workers’ comp in New Jersey?
You usually have to wait up to two weeks after submitting a claim to start receiving temporary disability benefits. To qualify, you need to be out of work for at least seven days, and once approved, benefits will be paid retroactively to cover that period.
If your insurance company delays or denies your claim without a valid reason, they may have to pay you an extra 25% and cover any legal fees.
