New Jersey workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
New Jersey
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
New Jersey
's workers' comp laws?
New Jersey's workers' compensation system stands as a cornerstone of protection for employees across the state, offering crucial support in times of work-related injuries or illnesses. This comprehensive system ensures workers receive necessary medical treatment, wage replacement benefits, and rehabilitation services, regardless of fault.
Workers’ compensation coverage in New Jersey ensures that workers are fairly compensated for lost wages and medical expenses.
Here’s everything you need to know about New Jersey workers’ compensation.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for nearly all employers in New Jersey. Employers are required to have an active policy before hiring their first employee. Coverage provides medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of a work-related injured employee’s medical treatment could become the responsibility of your business.
New Jersey workers' compensation laws
The State of New Jersey Department of Labor and Workforce Development Division of Workers’ Compensation administers the workers’ comp law in the state.
According to the New Jersey Workers Compensation Act, passed in 1911, the law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
In New Jersey, workers' compensation cases are "no-fault," which means that the amount a claimant receives will not increase or decrease regardless of who was at fault.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
New Jersey
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some New Jersey workers’ comp exemptions include:
- Volunteers
- Unpaid interns
- Independent contractors
- Sole proprietors with no employees
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Benefits provided
New Jersey workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
New Jersey workers’ comp benefits include:
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
New Jersey workers’ compensation rates
Employee workers’ comp lost wage pay is 70% of their average weekly wage.
As of 2024, the maximum New Jersey workers’ comp weekly benefit is $1,131.
How much does workers’ comp cost in
New Jersey
?
How do you file a workers’ compensation claim in
New Jersey
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in New Jersey should report their injury to their employer within 24 hours.
The injured worker and their supervisor must complete the Employer’s First Report of Accidental Injury and Occupational Disease together within 24 hours of the accident. The employer should promptly file this form with their workers’ comp insurance provider.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Receive benefits
If an employer’s insurance provider accepts the claim, the worker may begin receiving benefits to cover medical expenses and lost wages.
Step 4: Return to work/permanent disability benefits
Following their recovery, the worker is to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Choosing a healthcare provider
Employers are responsible for selecting a provider or giving a list of providers their workers’ comp insurer approves for the injured employee.
Compensation for missed work
In New Jersey, if an employee cannot work for seven days (including weekends and holidays), they are eligible for temporary disability benefits. The seven days need not be consecutive.
Resolving disputes
Injured workers who disagree with the outcome of their claim can file a formal Claim Petition or an Application for an Informal Hearing with the Division of Workers' Compensation.
How to get workers' compensation
Insurance requirements for employers
Unless exempt, employers in New Jersey must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.