Is Your Employer Required to Have Workers’ Compensation Insurance?

Image of a young man having a back pain while sitting at the working desk

If you suffer an injury on the job in New Jersey, one of your first steps to protect your rights will be to file a workers’ compensation claim. Under New Jersey law, all employers in the state who are not covered by federal programs must either have a valid policy of workers’ compensation insurance or be approved to be self-insured. The workers’ compensation must provide coverage for all qualified workers, whether they are residents of the state of New Jersey or not.

As a general rule, there are only two ways that a business in New Jersey can meet its workers’ compensation obligations: through a policy of insurance or by qualifying to be self-insured. Employers who opt to purchase workers’ compensation insurance must obtain their coverage from a mutual or stock insurance company that is licensed to do business in the state. The premiums paid for such insurance will be based on a number of factors, including the type of work being done, the wages being earned, and the number of claims filed by employees over the past few years.

In lieu of purchasing a policy of workers’ compensation insurance, your employer may apply to be self-insured. The Commissioner of the Department of Banking and Insurance will review the application, as well as financial information, to determine whether the employer has the resources to cover potential claims. The state may require that a bond be posted. A self-insured employer may administer the workers’ compensation program or may contract that responsibility out.

Limited Exceptions to the Rule

There are only a few exceptions to the rule requiring workers’ compensation insurance or self-insurance. Partners or members of a limited liability company need not be insured, but other employees of a partnership/LLC must be covered. The principal owner of a sole proprietorship is not required to have workers’ compensation coverage, but all other employees must.

Contact Us

To arrange a private meeting, contact us by e-mail or call our office at 908-200-2297. Evening and weekend meetings are available upon request. We take all major credit cards.

We handle all workers’ compensation cases on a contingency basis. There will be no attorney fees unless we get compensation for your losses.

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