Is workers' comp required in New Jersey?

Yes, New Jersey law requires that all employers, not covered by Federal programs, have workers' compensation coverage or be approved for self-insurance. This requirement applies to all employers, regardless of the number of employees, and includes part-time and seasonal workers. Failure to comply can lead to significant financial penalties.

What are New Jersey's commercial auto insurance minimums?

In New Jersey, a significant recent change in regulation involves commercial auto insurance. As of July 2024, commercial vehicles with a gross vehicle weight over 26,000 pounds are required to have a minimum of $1.5 million in liability coverage. This law was passed to ensure that there is adequate coverage for accidents involving large commercial vehicles in New Jersey.

How much does business insurance cost in New Jersey?

The cost of business insurance in New Jersey can vary widely depending on the type of business, number of employees, and the specific coverage needed. For example, the average cost for a general liability policy can be around $810 annually. However, a business in a high-risk industry or one that needs specialized coverage should expect to pay more.

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Commercial Insurance in New Jersey.

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New Jersey is one of the most densely populated and heavily regulated states for commercial insurance. High property values, strict employment laws, and mandatory workers' comp create a complex insurance environment. Commercial auto rates are among the highest in the nation. RISKX helps New Jersey businesses cut through the complexity and find coverage that's both compliant and competitively priced.

Key Industries in New Jersey

Pharmaceuticals & BiotechFinancial ServicesConstruction HealthcareRetailTransportation

Workers' Compensation in New Jersey: Required

New Jersey requires workers' compensation for all employers, with very limited exceptions. The state also requires temporary disability insurance (TDI) and family leave insurance (FLI) for most employees.

New Jersey Regulatory Notes

Workers' comp, temporary disability insurance (TDI), and family leave insurance (FLI) are all mandatory

New Jersey has some of the highest commercial auto insurance rates in the country due to traffic density

The NJ Law Against Discrimination (LAD) is one of the broadest anti-discrimination statutes in the nation — EPLI is essential

Flood insurance is critical for businesses in coastal and riverine areas — not included in standard commercial property policies

Workers' Comp Rate Details — New Jersey

Index Rate

$2.16

per $100 payroll

National Rank

of 51 jurisdictions

vs. Median

98%

above national median

Required At

1 employee

High Cost State

•Required for all employers — 2nd most expensive state in the nation
•No exemptions for small employers
•New Jersey Manufacturers Insurance Group is a major carrier

Penalty for non-compliance: Criminal offense; fines up to $10,000 and/or imprisonment up to 18 months

Rate data: Oregon DCBS 2024 Premium Rate Ranking Study. Index rates represent the median rate per $100 of payroll across all classification codes.

Auto Insurance Minimums — New Jersey

Min. BI Liability

35/70

per person/accident ($K)

Min. Property Damage

$25,000

PIP Required

Yes

No-Fault State

Yes

No-Fault State: New Jersey uses a no-fault auto insurance system. Personal Injury Protection (PIP) covers your own injuries regardless of fault. This affects how commercial auto claims are handled and may require additional coverage.

•Standard commercial/personal minimums raised to 35/70/25 effective Jan 1, 2026
•No-fault state with tiered PIP ($15K–$250K)
•UM/UIM required
•Basic policy option (personal auto only) has no BI requirement

Regulatory Overview — New Jersey

Regulatory Body

New Jersey Department of Banking and Insurance

Key Facts

•2nd most expensive state for workers' comp — 98% above the national median
•No-fault auto state with tiered PIP; standard minimums raised to 35/70/25 effective Jan 1, 2026
•Dense population and high cost of living drive insurance costs
•Strong pharmaceutical and finance sectors

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