What Kinds of Businesses Are Required to Have New Jersey Workers’ Compensation Insurance?
Although non-governmental employers in the state of New Jersey are technically allowed to opt out of workers’ compensation insurance coverage, some employers are required to have it. In this article, New Jersey workers’ compensation lawyer Dan Matrafajlo will explain what business entities are required by New Jersey law to be covered by workers’ compensation insurance:
1. Corporations.
Any business that is incorporated in the state of New Jersey must either obtain workers’ compensation insurance coverage or apply and get approved for self-insurance, so long as one or more individuals associated with the business, including its corporate directors and officers, perform services on behalf of the corporation before, during, or in anticipation of financial consideration. “Financial consideration” is defined as compensation for any work done; it includes cash, services, products, stocks, options to buy stocks, meals, lodging, etc.
2. Partnerships and Limited Liability Companies (LLCs).
Any business that is a partnership or a limited liability company in New Jersey must get workers’ compensation insurance coverage or self-insurance as long as one or more individuals associated with the business, not including partners or members of the LLC, perform services on behalf of the business before, during, or in anticipation of financial consideration.
3. Sole Proprietorships.
Any business operating as a sole proprietorship in New Jersey must get workers’ compensation insurance coverage or self-insurance as long as one or more individuals associated with the business, not including the principal owner, perform services on behalf of the business before, during, or in anticipation of financial consideration.
If you’ve been injured in a work-related accident, you may be entitled to New Jersey workers’ compensation benefits. For a free consultation, contact experienced New Jersey workers’ compensation lawyer Dan T. Matrafajlo today.
Dan T. Matrafajlo, Esq. is the Managing Member and Lead Partner at Beninato & Matrafajlo, Attorneys at Law, LLC, a New Jersey-based personal injury law firm with offices in Elizabeth and East Brunswick. With over two decades of experience representing clients in complex matters—including motor vehicle accidents, workers’ compensation, and wrongful death cases—he has recovered over $100 million on behalf of his clients and is known for securing significant results. He has also helped shape New Jersey personal injury law through notable Appellate Division decisions such as Hardison v. King and Frenklakh v. Lojek, with his litigation work featured in the New Jersey Law Journal, underscoring his authority in the field.
Mr. Matrafajlo was recognized as a Super Lawyers® Rising Stars honoree from 2012 to 2017 and is a member of the Million Dollar Advocates Forum—an honor reserved for attorneys who have achieved multi-million-dollar verdicts and settlements. Combining deep legal expertise with a client-focused approach, he provides strategic, results-driven representation while guiding clients through every stage of the legal process. He earned his Juris Doctor from the University of Miami School of Law and is admitted to practice in both New Jersey and New York.
