NJ Workers Comp Information

Find the latest news and information about New Jersey workers compensation insurance.

Business Owners can buy workers comp coverage from over 400 private insurance companies licensed to sell workers' compensation insurance in New Jersey. Most NJ employers shop their coverage with insurance agents or brokers authorized to sell coverage in the state. A lot of agencies don't have many appointments with insurance companies because of premium production requirements. At Workers Compensation Shop.com, we're appointed with over 35 of the top New Jersey carriers.

Learn more about New Jersey workers compensation rules and regulations below. If you have any question about your policy, or coverage in general, give one of our Specialists a call so we can help find the right coverage for your business.

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About Workers Compensation in New Jersey

Workers Compensation Regulation in NJ

New Jersey Department of Insurance
20 West State Street
Trenton, NJ 08625

New Jersey Division of Workers Compensation
PO Box 381
Trenton, NJ 08625-0381

New Jersey Employee Definition

New Jersey laws for workers compensation utilize a very liberal definition for employees. The NJ court system uses two basic tests: 1) Control Test and 2) Relative Nature of Work Test. If the business retains the right to supervise and control how the work is done than an employment relationship is established under the Control Test. If an individual relies on the income from a business and the work performed is integral to the business, then an employment relationship exists under the Relative Nature of Work Test. Only one of these tests need to be met to establish an employer-employee relationship for workers compensation in New Jersey.

NJ Second Injury Fund

The Second Injury Fund (SIT) makes benefit payments to injured workers who become permanently disabled as a result of work-related accidents when and if the employee had a pre-existing disability. The program is administered by the Division of Workers Compensation and is designed to encourage employers to hire workers with prior disabilities. .

New Jersey Uninsured Employers Fund

An Uninsured Employers Fund was established in New Jersey to pay the medical expenses and temporary disability benefits to injured workers when an employer fails to provide the legally required coverage and refuses to pay benefit payments awarded by the courts. Liens against the employer are then made by the Superior Court for any amounts paid from the fund..

New Jersey Cross Match Program

The Office of Special Compensation Funds conducts regular database searches the Department of Banking and Insurance's Compensation Rating Bureau and NJCRIB to identify uninsured business owners who have employees. Employers who receive a letter and Cross Match Response Form must provide the information on the form as soon as possible to verify coverage. Penalties may still be assessed for any period of time a NJ employer was uninsured.

Office of Special Compensation Funds
Cross Match Program
PO Box 399
Trenton, NJ 08625-0399
Fax: 609-633-7783

NJ Eligibility for Workers Comp Benefits

All medical expenses related to an injury should be paid by the insurance company. Temporary disability payments are not paid by the carrier unless the employee is unable to work for 7 days; however, benefits are retroactive to the first day of lost wages. In the event of a permanent disability, payments are due regardless of the number of lost work days.

NJ workers comp laws prohibit business owners from firing or decimating against any employee because they file, or attempt to file, a workers compensation claim.

NJ Construction Classification Premium Adjustment Program

This program is applicable to business owners in the construction industry. The program offers a reduction in workers comp premiums when the average wage levels exceed a predetermined threshold mandated by the state. Employers are generally notified of eligibility by the NJCRIB and must file for the credit each year.

New Jersey Premium Discounts

All policies developing a standard premium greater than $5,000 are eligible to receive automatic premium discounts. The discounts are given as a percentage of gross premium and are a function of overall cost of premium. Larger premiums will generate greater discounts for the insured. Insurance companies are required to automatically apply the discounts based on the current New Jersey premium discount formula. Discounts are not available on New Jersey State Fund policies.

NJ Plan Premium Adjustment Program

Most state fund policies written through the state Plan are required to pay more for their comp coverage. The Plan Premium Adjustment Plan (PPAP) increases the premium for state fund policies a minimum of 10%. Its measured by applying the PPAP adjustment factor to the standard premium. The PPAP charge changes each year and also varies by employer.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Healthcare
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
New Jersey Work Comp Information

Claims Process in NJ

Employers in New Jersey are required to report all accidents to their insurance company so that they can file a First Report of Injury with the state. The carrier will investigate the claim to ensure it is a valid claim. The insurance carrier will pay for medical expenses and loss of wages within 21 days of receiving notice of the accident or expense.

Carriers are required to file an additional Subsequent Report of Injury with the state within 26 weeks after the employee returns to work or has reached maximum medical improvement. This provides assurance to the Division of Workers Compensation that employees receive fair and times benefits. The injured worker should also receive a letter from the insurance company explaining the benefits paid on their claim.

Let Workers Compensation Shop.com help your business navigate workers comp insurance in New Jersey.


We take the time to make sure your business and employees are classified correctly and then we get to work finding the lowest rates available for your insurance coverage.
  • National workers comp Specialists
  • Licensed throughout the United States
  • Programs for standard and tough class codes
Once we've got your best quotes back from our carriers, we take the time to help you understand your options and the next steps to get covered quickly.
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  • Easy billing and installment plans
  • We've helped over 35,000 business owners
Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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