NJ Workers’ Compensation Insurance

NJ Workers’ Compensation Insurance 101: Everything You Need to Know

In New Jersey, businesses with one or more employees are required by law to have workers’ compensation insurance. Workers’ compensation insurance in NJ covers the costs of medical treatments for workers who get injured on the job. 

With over 800,000 enterprises and counting, New Jersey ranks 11th in the number of small businesses in the US, which is very impressive. If you are a business owner in New Jersey, you probably want to know more about New Jersey workers’ compensation insurance. Here’s a simple breakdown of everything you need to know. 

Workers putting new tracks on the road.

 

In New Jersey, businesses with one or more employees are required by law to have workers’ compensation insurance. Workers’ compensation insurance in NJ covers the costs of medical treatments for workers who get injured on the job. 

With over 800,000 enterprises and counting, New Jersey ranks 11th in the number of small businesses in the US, which is very impressive. If you are a business owner in New Jersey, you probably want to know more about New Jersey workers’ compensation insurance. Here’s a simple breakdown of everything you need to know. 

Types of New Jersey Workers’ Compensation Coverage

General Liability Insurance

General liability insurance covers medical fees in case someone gets hurt at the site, and repairs for the owner’s property damages.

Tools & Equipment Coverage

This type of policy covers any piece of equipment that is being used at the construction site. 

Employee Coverage 

This type of coverage pays for the treatment of any employee who gets injured while working. Also, in case an injured employee plans a lawsuit against your business, workers’ comp insurance in NJ might be of big help. 

Business Vehicle Insurance

If you use a car for business purposes, you should consider having commercial auto insurance coverage. If you cause an accident while driving your vehicle for business reasons, this policy pays for the damages. 

Bond

The insurance policy will cover any fees you get if a breach of contract is present.

How Much Does Workers’ Compensation Insurance in NJ Cost?

Estimated rates for NJ workers’ comp insurance are $1.45 per $100 in covered payroll. 

These policies provide protection from third-party property damage, advertising injuries, and third-party injuries.

Workers’ Compensation Insurance NJ FAQ

How Does Workmans Comp Work in New Jersey?

NJ workers’ compensation insurance covers medical fees, wage replacement, and permanent disability compensation to employees who became ill or got injured while working. This type of policy also provides death benefits to dependents of workers who died as a result of their employment. 

How is Workers’ Comp Insurance Calculated in NJ?

Estimated rates for NJ workers comp insurance are $1.45 per $100. The cost depends on a number of factors, such as: 

  • Location
  • Payroll
  • Claims history
  • Number of employees
  • Coverage limits

Is Workers’ Compensation Insurance Required in NJ?

In New Jersey, every business that has employees is required to have worker’s compensation insurance. There are some exceptions to the state law, including employers covered by federal programs and members of limited liability corporations (LLCs), sole proprietors, and partners in partnerships who don’t employ other people. However, part-time and seasonal employees must be covered by workers’ compensation insurance.

Keep in mind that there are penalties for not having workers’ compensation insurance in NJ: fines go up to $5,000 for every ten days that you don’t have coverage. Furthermore, you can get a fourth-degree charge from the State of New Jersey. 

Does S Corp Need Workers’ Compensation NJ?

Yes, all corporations must have NJ workers’ compensation insurance. Because the owners are also considered employees, there is no option to exclude them from the policy. 

Does an LLC Need Workers’ Comp in NJ?

Yes, every business that has employees in New Jersey is required to have workers’ compensation insurance. 

Where Can Employers Get New Jersey Workers’ Compensation?

In NJ, you can get workers’ comp insurance through trusted private insurance companies such as East Insurance Group. In case your business is unable to obtain a policy through a private insurer, you can get coverage through the New Jersey Compensation Rating & Inspection Bureau’s Assigned Risk Plan. 

When Does Workers’ Compensation in New Jersey Start?

There is a waiting period of seven days before workers’ comp insurance in NJ starts. In case your injured employee can’t return to work within that period, they can start getting disability benefits. 

What is the Minimum Payroll for Workers’ Compensation in NJ?

Sole proprietors, partners, and LLC members are required to use a minimum payroll amount of $34,320 for work comp rating purposes. Furthermore, corporate officers must use the minimum payroll of $34,320 to calculate the costs of the workers’ compensation policy. 

Is Workers’ Comp Insurance Taxable in NJ?

Workers’ compensation is not subject to income tax in New Jersey. According to the New Jersey Gross Income Tax Act, any amount that is received as workmen’s compensation for personal injuries or sickness is excluded from gross income. 

Can Owners be Excluded from Workers’ Compensation in NJ?

Because all corporations must carry workers’ comp insurance in NJ, and because the owners are considered employees of the company, that means they cannot be excluded from the policy. 

What is the Maximum Workers’ Compensation Benefit in NJ?

There is an insurance policy compensation maximum and minimum that changes every year in each state. In New Jersey, the maximum weekly benefit is $969.

Still confused about NJ workers’ compensation insurance or need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!