New Jersey law requires most employers to carry workers compensation insurance. This requirement applies to businesses of all sizes, including those with a single employee, and covers part-time as well as full-time workers. Workers compensation pays for medical treatment and a portion of lost wages when an employee is injured or becomes ill as a result of their work.
Muller Insurance writes workers compensation coverage for New Jersey employers through Amtrust, Cumberland Mutual, and Franklin Mutual. We have been placing workers compensation coverage for NJ businesses since 1906.
Who Is Required to Carry Workers Compensation in NJ
Under New Jersey law, virtually all employers are required to carry workers compensation insurance. This includes:
- Corporations, LLCs, and partnerships with any employees
- Sole proprietors who have employees other than themselves
- Businesses that use part-time, seasonal, or temporary workers
- Businesses that use leased employees through staffing agencies (though the staffing agency typically carries the coverage)
Sole proprietors with no employees are generally not required to carry workers compensation for themselves, though they may choose to do so. Corporate officers may elect to exclude themselves from coverage in some circumstances. Contact Muller Insurance to discuss the specific requirements for your business structure.
What Workers Compensation Covers
Medical Benefits
Workers compensation pays for all reasonable and necessary medical treatment for a work-related injury or illness, including emergency care, surgery, hospitalization, physical therapy, and prescription medications. There is no deductible and no co-pay for the injured employee.
Temporary Disability Benefits
If an employee is unable to work during recovery from a work-related injury, workers compensation pays a portion of their lost wages during the temporary disability period. New Jersey workers compensation pays 70 percent of the employee’s average weekly wage, up to the state maximum.
Permanent Disability Benefits
If a work-related injury results in a permanent impairment, the injured employee may be entitled to permanent disability benefits based on the degree of impairment and the employee’s earnings.
Employer Liability Coverage
Workers compensation policies include an employer liability component that covers claims by injured employees who bring a lawsuit against the employer in addition to, or instead of, filing a workers compensation claim. This coverage applies in situations where the employer’s conduct is alleged to have contributed to the injury beyond ordinary negligence.
Industries Where We Write Workers Compensation in NJ
Muller Insurance writes workers compensation for a range of business types in New Jersey. The following industries account for a significant portion of our workers compensation placements:
- Restaurants, cafes, and food service operations
- Retail stores and small commercial businesses
- Small contractors and trades, including carpentry, plumbing, and electrical
- Apartment building and property management operations with maintenance staff
- Office-based businesses and professional services
Penalties for Non-Compliance in NJ
New Jersey imposes significant penalties on employers who do not carry workers compensation when required. The state can issue stop-work orders, impose fines, and pursue other enforcement actions. Injured employees of non-compliant employers can sue the employer directly for damages. The penalties for non-compliance generally exceed the cost of the coverage.
Our Carriers for Workers Compensation in NJ
- Amtrust: writes workers compensation for a range of NJ business types, including contractors, restaurants, and retail.
- Cumberland Mutual: writes workers compensation for NJ employers across several industries.
- Franklin Mutual (FMI): writes workers compensation for qualifying NJ employers.
Contact Muller Insurance
For a workers compensation quote for your NJ business, call Muller Insurance at 201-659-2403 or visit MullerInsurance.com. We write workers compensation for employers across New Jersey through Amtrust, Cumberland Mutual, and Franklin Mutual.
