What Kinds of Businesses Are Required to Have New Jersey Workers’ Compensation Insurance?

• Dan T. Matrafajlo
• Fri Jul 2011
• Workers Compensation,
• 0

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.