How Do I Get a Workers’ Comp Exemption in New Jersey?
There are few Workers’ Compensation exemptions in New Jersey. The only way you will be eligible for an exemption is if you do not employ workers in addition to yourself.
Those who do not want to get Workers’ Compensation in New Jersey should learn whether or not they are exempt from the system. If you are exempt, the exemption will be automatic and you will not have to apply for it. Individuals and companies that are exempt from needing Workers’ Compensation include sole proprietors with no employees, independent contractors with no employees, volunteers, and unpaid interns. If you or your company is exempt from needing Workers’ Compensation, you can still get insurance it in New Jersey. Purchasing a policy is a wise decision, as doing so will allow you to file a benefit claim in the event you are injured on the job.
To learn more about your company’s coverage requirements, call NPN Brokers at (866) 340-9120 and speak with our New Jersey Workers’ Compensation insurance brokers today.
Can You File for a Workers’ Comp Insurance Exemption in New Jersey?
In some states, employers can submit forms to the proper government agencies to inform them of their decisions to file for exemptions from Workers’ Compensation coverage. In New Jersey, that is not necessary.
There is no need to inform the Division of Workers’ Compensation within the New Jersey Department of Labor and Workforce Development of your decision to exempt yourself from Workers’ Compensation. In fact, you cannot choose to claim an exemption. If you aren’t exempt under New Jersey statutes, you must get Workers’ Compensation for your company and your employees. Workers’ Compensation exemptions are automatic and require no additional action from exempt individuals or companies, whether they wish to get insurance or not.
Who is Exempt from Needing Workers’ Comp Coverage in New Jersey?
Only in rare situations are people or entities exempt from needing Workers’ Compensation in New Jersey. In fact, most companies have to get workplace liability insurance, whether they self-insure or seek coverage from a private carrier.
All regular employees, including seasonal workers, must be covered by Workers’ Compensation in New Jersey. Volunteers and unpaid interns do not have to be covered by insurance. Furthermore, partners, LLCs, and sole proprietors do not have to get Workers’ Compensation, provided they do not employ additional workers. Independent contractors working alone also do not have to get a workplace liability insurance policy.
That said, as soon as a company hires just one worker, they must get Workers’ Compensation. This includes sole proprietorships, partnerships, LLCs, and independent contractors with employees. Once you hire an employee, you will no longer be exempt from needing Workers’ Compensation in New Jersey.
It is important to make sure that your employees are classified correctly. For example, suppose you hire workers as independent contractors so that your company will not have an insurance liability. If you wrongly classify those workers as 1099 employees, and they are instead technically regular employees, you will need Workers’ Compensation. If that misclassification causes your company to be non-compliant with New Jersey’s insurance requirements, it might be given fines and other penalties.
Can Exempt Individuals in New Jersey Get Workers’ Comp Insurance?
Although certain people and companies are exempt from needing Workers’ Compensation in New Jersey, they can still get insurance if they so choose.
Suppose you want to obtain insurance as someone who does not need to be covered by Workers’ Compensation in New Jersey. In that case, there is no need to notify the Division of Workers’ Compensation about your decision ahead of time. You can, however, send the agency proof of insurance once you agree to a policy.
Typically, individuals and companies exempt from needing Workers’ Compensation can get insurance for relatively affordable prices, as costs tend to increase as employees do. Insurance might be a bit costlier for independent contractors or sole proprietors in the construction industry, considering the risks such individuals face regarding workplace injuries.
To help you find coverage despite being exempt, our New Jersey Workers’ Compensation insurance brokers will start by contacting trusted carriers that, as proven through the relationships they have established with our brokers, do not require companies to pay expensive deposits or sign confusing contracts. The policy you get will not require you to engage in an annual audit either and might instead base your company’s Workers’ Compensation premiums on monthly payroll information.
Should Exempt Individuals Get Workers’ Comp Coverage in New Jersey?
Just because you or your company is exempt from needing Workers’ Compensation in New Jersey does not mean you should stay uncovered. If you happen to be injured on the job, you could be without recourse for financial recovery if you choose to stay without insurance.
Those who do not get Workers’ Compensation because they are exempt from needing it might still be injured at work. This is especially common among sole proprietors or independent contractors that do construction work, though workplace injuries can happen to anyone in any industry. If you are not protected by a Workers’ Compensation policy, you will not be eligible to receive lost-wage benefits or medical benefits. This means you will likely be responsible for covering your injuries out of pocket. If you do get Workers’ Compensation, however, you can file a claim to receive benefits and avoid any unnecessary financial responsibility for your injuries in New Jersey.
Workers’ Compensation is important for all businesses, regardless of their size. Even if you or your company is exempt from the needing coverage, getting insurance can provide you with the safety net you need should you be hurt while working in New Jersey.
Call Our Brokers to Get Workers’ Comp in New Jersey
Call (866) 340-9120 today to speak with the New Jersey Workers’ Compensation insurance brokers at NPN Brokers.
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