Who must provide workers compensation in NJ?

Being injured in a workplace accident is a very serious situation that can have long-term consequences for a victim. In the state of New Jersey, all employers who are not covered by Federal programs are required to have either workers’ compensation coverage or be approved by the Commissioner of the Department of Banking and Insurance for self-insurance.

One question that business owners in New Jersey often have is in regards to whether they are required to provide workers’ compensation coverage. If your business entity falls into one of the following categories, you will be required to maintain workers’ compensation insurance for your workers:

  • Sole Proprietorships must have workers’ compensation or self-insurance as long as they have one or more employee aside from the principal owner.
  • Partnerships and LLC’s must provide workers’ compensation or be approved for self-insurance as long as they employ one or more workers. Partners or members of the LLC will not be included in the employee count when determining this.
  • Corporations that operate in the state of New Jersey are required to either maintain a workers’ compensation insurance policy or be approved for self-insurance as long as one or more individuals works for the corporation. Please note that unlike the other categories, corporate officers are included in the count for “one or more individuals” when determining if it is necessary to provide insurance.

In the event that your business fails to provide workers’ compensation to your employees, you can face serious penalties. In New Jersey, the willful failure to insure is considered a crime of the fourth degree. Additionally, you may face significant monetary penalties, including a fine of $5,000 for the first 10 days without insurance and up to $5,000 for each additional ten-day period afterward. If you fail to provide workers’ compensation insurance and an injury or death occurs, you are required to pay for all medical expenses, temporary disability, permanent disability, or dependency benefits.

If you have become the victim of an on the job injury, it may be beneficial to speak with an attorney and the doctor that is treating you to determine how to make the process as easy as possible. AllianceMeds understands that a workplace accident can be challenging and is here to help. We will deliver your medication to your door using overnight delivery and cover any out of pocket expenses that may arise. If you have any questions about how we can help, contact AllianceMeds today.