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New Jersey business insurance: requirements and costs

New Jersey sets workers' comp rates through a bureau filing that the Department of Banking and Insurance approves, and the Department approved a 4.3% average decrease for policies new or renewing on or after January 1, 2026.⁠2 Coverage is required from the first employee, with no headcount threshold, and corporate officers count as employees.⁠1 Oregon's 2024 ranking put New Jersey second most expensive of 51 jurisdictions for comp manual rates.⁠8

Checked against 10 sources Last reviewed How we check figures

New Jersey at a glance

Workers’ comp requiredAll employers with 1+ employee; sole owners, partners, LLC members not counted
Where employers buy itPrivate insurers
Rates set byNew Jersey Compensation Rating and Inspection Bureau
Employer comp cost, 2023$1.27 per $100 of covered wages (US $0.98)
Comp rate index, 2024$2.16, ranked 2 of 51 (1 = most expensive)
Employer health premium, 2025$9,743 single, $29,666 family (average total premium)
Auto liability minimum35/70/25
Payroll insurance programsTemporary Disability Insurance (TDI) and Family Leave Insurance (FLI)

There is no state fund in New Jersey. An employer either buys a policy from an insurer authorized in the state or applies to the Commissioner to self-insure, and the Department of Labor says insurer premiums are based on the classification of the work, the employer's claims experience and its payroll.⁠1 The New Jersey Compensation Rating and Inspection Bureau (NJCRIB) files the rates and rating values, and it also administers the state's workers' compensation insurance plan for employers that cannot find a voluntary carrier.⁠2⁠10

The January 1, 2026 decision shows how the system moves. In Circular 2510 (October 29, 2025), NJCRIB reported a -4.3% overall change built from several parts. Recent policy-year experience pushed the indication up by 12.0%, a trend factor of -15.5% pulled it down, and a benefit increase (the maximum weekly benefit rose from $1,159 to $1,199) and an expense adjustment of +0.5% completed the calculation.⁠2 The average change differed by industry group: -2.8% for Goods & Services, -3.8% for Contracting, -4.4% for Manufacturing and -6.4% for Office & Clerical.⁠2 Of the 550 classifications (six carry no rate), 401 went down, 141 went up and two were unchanged, so your own class can move against the average.⁠2 NJCRIB announced a filing for January 1, 2027 on September 23, 2026; the percentage requested and the Department's decision were not published in the pages we checked.⁠3

The cost data shows a high-cost state that is improving more slowly than the nation. NASI estimates New Jersey employers spent $1.27 per $100 of covered wages on comp in 2023, down from $1.45 in 2019. By our calculation that is a 12.7% drop, against 16.3% nationally ($1.17 to $0.98), leaving New Jersey about 29% above the national figure.⁠7 Oregon's index, based on manual rates in effect January 1, 2024, was $2.16 per $100 of payroll, or 198% of the median state (Georgia, $1.09).⁠8 It is an index built on Oregon's payroll mix, not an average New Jersey rate. On health benefits, AHRQ's 2025 survey found 41.7% of New Jersey private-sector establishments with fewer than 50 employees offered insurance, against 32.1% nationally. The small-firm average single premium was $10,415 (about 15% above the $9,034 national small-firm figure, our calculation), with employees paying $2,698 against $1,924.⁠9 A New Jersey employer budgeting for a new hire should therefore expect comp, temporary disability contributions and health costs to run above the national pattern.

Workers’ compensation in New Jersey

Every New Jersey employer not covered by federal programs must carry workers' compensation or be approved to self-insure, with no minimum number of employees; an out-of-state employer can be covered if the employment contract was made in New Jersey or the work is done there.⁠1 A corporation needs coverage once any individual, including a corporate officer, performs services for pay or other consideration.⁠1

Who is exempt

  • Sole proprietorships: the principal owner is not counted, so coverage is needed once anyone else works for the business.⁠1
  • Partnerships and LLCs: partners and LLC members are not counted, so coverage is needed once anyone else works for the business.⁠1
  • Governmental agencies must provide benefits but need not buy insurance or be approved self-insurers.⁠1

Buying coverage and who sets the rates

From a stock or mutual insurer authorized to write in New Jersey, or by self-insurance approved by the Commissioner of Banking and Insurance under N.J.S.A. 34:15-77, which depends on financial ability and permanence of the business and may require security.⁠1 The residual market is the NJ Workers Compensation Insurance Plan run by NJCRIB.⁠10

Latest rate decision (1 Jan 2026): The Department of Banking and Insurance approved a 4.3% average decrease in workers' compensation and employers' liability rates and rating values for new and renewal policies (Circular 2510, Oct. 29, 2025). Industry-group averages ranged from -2.8% (Goods & Services) to -6.7% (Miscellaneous). Official notice.

Allowed with approval from the Commissioner of Banking and Insurance; an approved self-insurer may administer its own claims or use a third-party administrator.⁠1

Penalties for going without

Failing to insure is a disorderly persons offense, and a willful failure is a fourth-degree crime. Penalties can be assessed up to $5,000 for the first ten days and up to $5,000 for each additional ten-day period, and corporate officers can be personally liable. If an uninsured employee is hurt, the employer, including individual officers, partners or LLC members, is directly liable for medical and disability benefits, and awards can become liens on their assets.⁠1

What New Jersey employers pay

Employer workers’ compensation costs per $100 of covered wages, 2019–2023
YearNew JerseyUnited States
2019$1.45$1.17
2020$1.32$1.08
2021$1.30$1.01
2022$1.28$1.00
2023$1.27$0.98

Employer cost per $100 of covered wages: premiums paid by insured employers plus benefits and administrative costs of self-insured employers, divided by the wages of workers covered by workers’ compensation. The United States figure is NASI’s national total, which includes federal programs. Source: National Academy of Social Insurance (NASI), published 11 Aug 2026.

Oregon’s biennial comparison of workers’ comp rates puts New Jersey’s index for rates in effect on 1 January 2024 at $2.16 per $100 of payroll, 98% above the national median of $1.09 (rank 2 of 51, where 1 is the most expensive). The index prices the same 50 risk classes, weighted by Oregon payroll, in every state, so it compares rate levels rather than what employers actually pay. Compare every state.

Disability and paid leave insurance

New Jersey runs a payroll-funded program that employers must register for, fund or insure on top of workers’ compensation.

New Jersey disability and paid leave programs, 2026
Program2026 contributionEmployer’s part
Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI)TDI: employers 0.10% to 0.75% on the first $44,800 per employee ($44.80 to $336.00), employees 0.19% on the first $171,100; FLI: employees 0.23% on the first $171,100 (2026).⁠4Employers pay TDI contributions at an experience-based rate in the 0.10% to 0.75% range and withhold the employee's TDI and FLI shares; employers make no FLI contribution.⁠4

The employee withholding caps are $325.09 for TDI and $393.53 for FLI in 2026.⁠4

Employer health insurance in New Jersey

Average annual premium per enrolled employee at private-sector employers, 2025
MeasureNew JerseyFirms under 50United States
Single coverage, total premium$9,743$10,415$9,025
Family coverage, total premium$29,666$26,238$26,281
Employee share, single$2,223–$1,817
Employers offering coverage56.8%41.7%49.2%

Average total annual premium per enrolled employee at private-sector establishments that offer health insurance; the offer rate is the share of establishments offering coverage. Small firms have fewer than 50 employees. Source: Agency for Healthcare Research and Quality (AHRQ), Center for Financing, Access and Cost Trends, 2025 survey year. All states.

Commercial auto in New Jersey

Every vehicle registered in New Jersey, including business vehicles, must carry at least 35/70/25 in liability limits (bodily injury per person / per accident / property damage, in thousands of dollars). Official source.

Under P.L.2022, c.87, minimums were 25/50/25 on policies issued or renewed from January 1, 2023, and rose to $35,000 per person and $70,000 per accident for new and renewal policies on or after January 1, 2026; property damage stays at $25,000. The Act does not apply to the basic automobile policy under N.J.S.A. 39:6A-3.1. The Department asked commercial auto insurers that write minimum-limit coverage to file rates for the new minimums by January 30, 2026.⁠5

Trucks and buses used in interstate commerce must also meet federal minimums of $750,000 to $5 million: see commercial auto minimums and what commercial auto costs.

Other New Jersey rules that affect insurance costs

Home improvement contractors need $500,000 of liability cover

A registered home improvement contractor must maintain a commercial general liability policy, on an occurrence form, with at least $500,000 per occurrence, and file proof with the Division of Consumer Affairs. If the policy is canceled or not renewed, a replacement certificate must be filed before the old policy ends.⁠6

Posting notice of coverage

Employers must post, in a conspicuous place at the worksite, the Commissioner's form stating that they have secured workers' compensation coverage or qualified as self-insurers.⁠1

New Jersey compared with its neighbors

Workers’ comp and health insurance costs, New Jersey and neighboring states
New Jersey$1.27$2.16$9,743
New York$1.12$1.98$10,913
Pennsylvania$1.08$1.14$9,421
Delaware$0.88$0.97$9,459

Sources

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National figures: NASI (employer comp costs), Oregon DCBS (rate index), AHRQ MEPS-IC (health premiums).

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Other states

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