Short answer. All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too.
At a glance
- Who must carry it
- All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too.
- Owners and officers
- Coverage is needed when anyone other than the principal owner works for a sole proprietorship, anyone other than partners or LLC members works for a partnership or LLC, or anyone, corporate officers included, works for a corporation.
- Self-insurance
- Allowed with approval from the Commissioner of Banking and Insurance.
- Going without
- A disorderly persons offense (a fourth-degree crime if willful), with penalties of up to $5,000 for the first ten days and up to $5,000 for each further ten days.
- Workplace notice
- Post the Employer Notice of Workers' Compensation Insurance Coverage at the work site; insured employers get it from their insurer.
- Check a policy
- The division refers coverage questions to the NJ Compensation Rating and Inspection Bureau. Open the lookup
- Agency
- New Jersey Division of Workers' Compensation
In the agency's words
The rule
"all New Jersey employers, not covered by Federal programs, have Workers' Compensation coverage"
Owners
"excluding the principal owner, performs services for the business."
Going without
"up to $5,000 for each additional ten-day period of failure to insure thereafter."
Notice
"Employer Notice of Workers' Compensation Insurance Coverage"
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Required. See why
- 4 employees, construction, corporation: Required. See why
- 6 employees, most businesses (not construction), sole proprietor: Required. See why
Your own numbers: open the checker for New Jersey.
Worth knowing
Uninsured employers, including individual corporate officers, partners and LLC members, can be directly liable for benefits after a work injury.
Already on this site for New Jersey: New Jersey home improvement contractors · Starting a business in New Jersey.
Not stated on the pages we read: independent contractors.
Official sources
- Workers' Compensation | Employer Requirements (NJ Department of Labor) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in New Jersey?
All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too. The agency puts it as "all New Jersey employers, not covered by Federal programs, have Workers' Compensation coverage."
Do owners and officers need coverage in New Jersey?
Coverage is needed when anyone other than the principal owner works for a sole proprietorship, anyone other than partners or LLC members works for a partnership or LLC, or anyone, corporate officers included, works for a corporation.
What happens to a New Jersey employer with no coverage?
A disorderly persons offense (a fourth-degree crime if willful), with penalties of up to $5,000 for the first ten days and up to $5,000 for each further ten days.
What notice must a New Jersey employer post?
Post the Employer Notice of Workers' Compensation Insurance Coverage at the work site; insured employers get it from their insurer.
Can an employer self-insure in New Jersey?
Allowed with approval from the Commissioner of Banking and Insurance.
All states: workers' comp requirements by state · Missouri · New Mexico