New Jersey workers' comp and liability insurance
New Jersey requires workers' compensation from the first person you pay, with no minimum payroll and no exemption for corporate officers. We help home health agencies, health care service firms and assisted living providers in New Jersey meet those rules and the registration requirements that come with them.
Who must carry workers' comp in New Jersey
Every New Jersey corporation that pays anyone for services must carry workers' compensation, including its corporate officers; there is no minimum payroll and no single-officer exemption. Sole proprietors, partnerships and LLCs must cover anyone they pay other than the owners, partners or members, and family members are not excluded. Owners can elect to cover themselves. Rates and classifications are set by the Compensation Rating and Inspection Bureau (NJCRIB), and the program is administered by the NJ Department of Labor's Division of Workers' Compensation.
Penalties for going without coverage
- A disorderly persons offense, or a fourth-degree crime if willful, with up to 18 months in jail and a $10,000 fine (N.J.S.A. 34:15-79)
- Civil penalties of up to $5,000 for the first 10 days and up to $5,000 for each 10 days after, even without prosecution
- Stop-work orders, with a $5,000 civil penalty for each day you keep operating
- Corporate officers can be held personally liable
Class codes for New Jersey care providers
- 8835 Nursing, home health, public and traveling: licensed or certified staff other than RNs and nurse practitioners
- 9045 RNs and nurse practitioners employed by health care service agencies
- 8829 Assisted living facilities providing on-site intermediate or skilled care, and nursing homes
- 8810 Clerical office employees
Registration and licensing
Health care service firms, which place caregivers in clients' homes, register with the NJ Division of Consumer Affairs (N.J.A.C. 13:45B-13). Registration requires a $10,000 surety bond unless the Director waives it, accreditation by a body recognized by the Department of Human Services, and an annual fee of $500 per primary location. Home health agencies are licensed by the NJ Department of Health under N.J.A.C. 8:42, and assisted living residences under N.J.A.C. 8:36, which starts with a certificate of need.
Coverage we build for New Jersey agencies
- Workers' compensation classified correctly between aides, nurses and office staff
- General and professional liability for client care, often required by referral sources and payers
- The $10,000 health care service firm surety bond
- Hired and non-owned auto, abuse and molestation, and employment practices liability
Frequently asked questions
Is workers' comp required in New Jersey with one employee?
Yes. New Jersey has no minimum payroll. A corporation must cover everyone it pays, including corporate officers, and a sole proprietor or LLC must cover anyone it pays other than the owners.
Can New Jersey corporate officers exclude themselves from workers' comp?
No. Unlike many states, New Jersey has no single-officer exemption; corporate officers are covered employees. Sole proprietors, partners and LLC members are excluded unless they elect coverage.
What bond does a New Jersey health care service firm need?
A $10,000 surety bond, unless the Division of Consumer Affairs Director waives it, under N.J.A.C. 13:45B-13.5. The firm must also be accredited and pay a $500 annual registration fee per primary location.
What are the penalties for not having workers' comp in New Jersey?
Up to 18 months in jail and a $10,000 fine for a willful violation, civil penalties of up to $5,000 per 10-day period, stop-work orders with $5,000 per day for continuing to operate, and personal liability for corporate officers.
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