New Jersey Workers' Compensation Insurance
Everything you need to know about workers' comp in New Jersey: when it's required, who's exempt, average rates, and how to get coverage in 60 seconds.
When is workers' comp required in New Jersey?
Required for any employer with at least one employee, including part-time.
Sole proprietor & partnership rules
Sole proprietors are exempt unless they elect.
Owner / corporate officer exclusion
Officers in close corporations may be excluded; LLC members may exclude.
New Jersey-specific notes
New Jersey uses its own bureau (NJCRIB) and has some of the highest workers' comp rates in the country.
How much does workers' comp cost in New Jersey?
The average workers' comp rate in New Jersey is approximately $1.99 per $100 of payroll. Your actual rate depends on your industry class code, claims history, payroll size, and carrier.
Example: a New Jersey business with $100,000 in payroll at the state average rate would pay approximately $1,990 per year. A clerical-only business (class code 8810) would pay much less; a roofing contractor (5551) would pay much more.
Want an exact rate for your business?
Class code rates vary widely. Get a free quote and we'll look up your exact New Jersey rate for your industry.
Get My New Jersey Quote →New Jersey workers' comp by industry
Industry-specific rates, common class codes, and requirements for New Jersey businesses:
Frequently asked — New Jersey workers' comp
Do I need workers' comp if I have only one employee in New Jersey?
Yes — New Jersey requires workers' comp coverage starting with one employee.
Are 1099 contractors covered under my New Jersey workers' comp policy?
Generally no — true independent contractors are not employees and not covered. However, New Jersey (like most states) applies an "ABC test" or similar to determine if a 1099 worker is actually a misclassified employee. If they're misclassified, you may owe back premium and penalties. Many general contractors require their 1099 subs to carry their own workers' comp.
Can I get pay-as-you-go workers' comp in New Jersey?
Yes — most major carriers offer pay-as-you-go workers' comp in New Jersey, with premium based on actual payroll each pay period instead of a large upfront deposit.
What if I'm being audited by my New Jersey workers' comp carrier?
Workers' comp audits often result in additional premium owed because of misclassified employees, missed payroll, or wrong class codes. We offer free audit reviews and can dispute incorrect classifications with your carrier. In many cases we save clients thousands.