In New Jersey, a corporation that has anyone performing services for pay must carry workers compensation, and that includes its own officers. New Jersey is unusual: active corporate officers are automatically covered and cannot opt out, so a corporation whose only worker is an officer still needs a policy.
Who this is for: Owners and officers of a New Jersey corporation, a C-corp or S-corp, who want to know whether the business, and they themselves, must be covered by workers comp. Workers comp pays medical bills and part of lost wages after a work injury.
The short version
- Officers are in: New Jersey counts active corporate officers as employees who must be covered, with no opt-out.
- Opposite of the LLC rule: LLC members and partners are left out by default, while officers are automatically included.
- One-officer companies still need it: even a solo owner-officer corporation must carry a policy.
- All employees count: every worker, full-time, part-time, or seasonal, must be covered.
- No state fund: you buy from a private insurer, and Morrow shops several to fit your payroll.
Why officers cannot opt out in New Jersey
Many states let a corporate officer sign a waiver to leave themselves off the policy. New Jersey does not. The state's Workers' Compensation Law defines an employee to include officers of corporations who perform services for pay, and the Department of Labor confirms that corporations must maintain coverage as long as any officer performs services for the business. There is no officer-exclusion form in New Jersey.
| Person in the corporation | Covered? | Can they opt out? |
|---|---|---|
| Active officer (president, VP, treasurer, secretary) | Yes, automatically | No, New Jersey has no officer exclusion |
| Owner-officer who is the only worker | Yes | No, a policy is still required |
| Regular employee (full-time) | Yes | No |
| Part-time or seasonal employee | Yes | No hours minimum |
| 1099 worker you control | Yes, likely an employee | Turns on the control test |
How this differs from an LLC or partnership
The contrast trips people up. If you run an LLC or a partnership, the owners are left out of coverage by default and elect in only if they want it. A corporation runs the other way: the officers are in from the start and cannot elect out. If you are choosing a business structure partly around this, it is worth knowing the rule flips.
Personal liability if the corporation goes uninsured
New Jersey does not let officers hide behind the corporation on this. If the corporation fails to carry required coverage, any officer actively engaged in the business can be held personally liable, and the resulting penalties and awards can become liens against the officers that are not wiped out in bankruptcy.
A quick New Jersey example
Illustrative, not a quote. A married couple runs a small HVAC company in Edison as an S-corporation, with one of them as president and the other as an installer on payroll. Both are covered as a matter of law because New Jersey does not allow officers to opt out. When the installer falls off a ladder on a job, the policy pays the hospital bill and part of the lost wages while the shoulder heals. Had the corporation gone uninsured to save money, the president could have been held personally liable for penalties and the injured spouse's benefits.
Real questions New Jersey owners ask
I am the only officer and only worker in my New Jersey corporation. Do I still need workers comp?
Yes. New Jersey automatically counts active corporate officers as covered employees, so a corporation with a single owner-officer still must carry a policy. There is no opt-out.
Can a corporate officer in New Jersey waive their own coverage?
No. Unlike most states, New Jersey has no officer-exclusion election. An active officer who performs services for the corporation is covered and cannot sign off it.
Why is this different from an LLC?
Business structure changes the default. LLC members and partners are left out unless they elect in, while corporate officers are automatically in and cannot elect out. The rules run in opposite directions.
Are all our employees covered too?
Yes. Every employee, full-time, part-time, or seasonal, must be covered, in addition to the officers. New Jersey sets no minimum headcount for the requirement.
What if we stop paying ourselves for a while?
Coverage tracks whether an officer performs services for prior, current, or expected pay. If officers are actively working in the business, treat the corporation as needing coverage and confirm your situation with the Division of Workers' Compensation or your advisor.
Can I be personally sued if the company has no coverage?
You can be held personally liable. New Jersey makes officers actively engaged in an uninsured corporation liable for the failure, and penalties can become liens that bankruptcy does not discharge.
Does an S-corp versus C-corp change the answer?
No. New Jersey treats active officers of any corporation as covered employees. The S-corp or C-corp tax choice does not change the workers comp requirement.
Why New Jersey owners choose Morrow
- We shop the right market for you. New Jersey is an open, competitive market with no state fund, so coverage comes from any of the private insurers the state authorizes, and Morrow shops several of them to fit your trade and budget instead of leaving you with one option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related New Jersey guides
Every New Jersey business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in New Jersey (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- HVAC contractor workers comp in New Jersey
This guide is general information, not legal advice. New Jersey rules and penalty amounts can change, so verify current requirements with the New Jersey Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.