New Jersey law requires that all New Jersey employers not covered by federal programs have workers’ compensation coverage or be approved for self-insurance. Even out-of-state employers may need workers’ compensation coverage if a contract of employment is entered into in New Jersey or if work is performed in New Jersey.
Insurance coverage may be obtained in one of two ways:
• Workers’ compensation insurance policy written by a mutual or stock carrier authorized to write insurance in New Jersey. Premiums for such insurance are based on the classification(s) of the work being performed by employees, the claims experience of the employer, and the payroll of the employer.
• Self insurance through application to and approval by the Commissioner of the Department of Banking and Insurance. Approval for self-insurance is based on the financial ability of the employer to meet its obligations under the law and the permanence of the business. The posting of security for such obligations may be required. A self-insured employer has the option of administering its own workers’ compensation claims or contracting with a third-party administrator (TPA) to provide these services. More information about self-insurance is available in N.J.S.A. 34:15-77 of the New Jersey Workers’ Compensation statute; employers may also contact the Department of Banking and Insurance at 609-292-5350, Ext. 50099.
Public and private employees are covered by the act (NJ Rev. Stat. Sec. 34:15-1et seq.,Sec. 34:15-72).
Exceptions. The following employees are not covered by workers' compensation unless the employer voluntarily elects to cover them:
• People who do casual labor that is not in the usual course of the employer's business