Only if you are a sole proprietor, a partner, or an LLC member, and then you are already out unless your business elects to cover you. If you are an officer of a corporation who works in the business, New Jersey gives you no way out at all. That rule runs the opposite way from most states, and it comes from R.S. 34:15-36. Who this is for: New Jersey owners trying to lower a workers comp bill, or trying to work out whether they need a policy at all.
The short version
- Sole proprietors, partners, and LLC members are out by default in New Jersey. You elect in when the policy is bought or renewed, and you cannot change it during the policy year.
- Corporate officers who work in the business are in, and cannot be excluded. New Jersey has no officer exclusion form.
- A sole proprietorship, partnership, or LLC with no employees other than the owners does not need a policy at all. A corporation with a working officer does.
- Excluding yourself saves the premium on your own pay, but your own injuries are then uninsured, and health plans often deny work injuries.
- General contractors often require coverage for everyone on site, owner included, no matter what the state allows.
Who can be excluded from workers comp in New Jersey?
New Jersey sorts owners by the kind of business they own. Here is how each one is treated under R.S. 34:15-36.
| You are a | Default in New Jersey | Can you change it? | How |
|---|---|---|---|
| Sole proprietor | Not covered | Yes, you can elect to be covered | Tell the insurer when the policy is bought or renewed. The election cannot be withdrawn mid-term. |
| Partner (including LLP partner) | Not covered | Yes, but all partners must agree to elect | Same timing. All partners are in or all are out. |
| LLC member | Not covered | Yes, but all members must agree to elect | Same timing. All members are in or all are out. |
| Corporate officer who works in the business | Covered | No | There is no exclusion election in New Jersey. The officer's pay is rated like any employee's. |
Notice the direction. In many states the owner is covered unless they opt out. In New Jersey the owner of a sole proprietorship, partnership, or LLC is out unless they opt in. New York works the same way for those owners, but not for corporate officers: New York lets a one or two officer corporation exclude its officers, and New Jersey never does.
What happens if I elect coverage as an owner in New Jersey?
Your business tells the insurer at purchase or renewal that the owners should be treated as employees. The insurer adds a one page change to the policy (an endorsement) and rates your pay the same way it rates a corporate officer's, under the job class for the work you actually do. Once the year starts, the election stands until renewal. You cannot drop it after a quiet six months to save money.
| Item | New Jersey rule |
|---|---|
| When you can elect | Only at purchase or renewal |
| Can you cancel the election mid-year | No |
| Partial election (some partners, not others) | No. All partners or all members must agree |
| The form the insurer attaches | WC 29 03 07, the New Jersey endorsement that names the owners being covered |
Why can't a corporate officer opt out in New Jersey?
Because New Jersey counts an officer of a corporation as an employee whenever they do work and get paid for it. The state's own guidance says every New Jersey corporation needs workers comp as long as anyone, including an officer, works for pay. There is no exception for a one person corporation. If you are the president, the only worker, and you take a salary, your corporation needs a policy. See workers comp for New Jersey corporations.
The stakes are personal. Under R.S. 34:15-79, an active officer is personally liable when a corporation fails to insure. Penalties include a criminal charge, up to $5,000 for every 10 days without coverage, and an order to stop work if the state decides you knew. See the penalties for no workers comp in New Jersey.
Should I exclude myself from workers comp in New Jersey?
If you can, weigh three things.
- The saving. Staying out takes your own pay out of the payroll your premium is built on. What that is worth depends on the job class you would be rated in, what you draw, and your claims history. Ask your broker to price the policy both ways before renewal.
- Your own injury. Workers comp pays medical bills and lost wages with no fault question. Many health plans exclude injuries at work. A bad fall can mean surgery and months off the job, and that is yours to carry if you are excluded.
- Your contracts. Many New Jersey general contractors require every person on site to be covered, owner included, and their insurer may charge them for your pay if you are not. Read the contract before you decide.
What if I am the only person in my New Jersey business?
A sole proprietorship, partnership, or LLC with no employees other than the owners is not required to buy a policy. Many do anyway, because a general contractor will not let an uninsured owner on site, or because they want their own injuries covered. A corporation whose only worker is a paid officer must carry a policy. See workers comp for New Jersey sole proprietors and workers comp for New Jersey LLCs.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: Two brothers run a painting LLC in Cherry Hill with three employees. Each member draws about $65,000. At renewal their agent asks whether the members want to elect coverage. To save money, they stay out, which is the New Jersey default.
What went wrong: In March one brother falls from a ladder on a job in Haddonfield and breaks his wrist and two ribs. He is out for eleven weeks. The health plan denies the claim as a workplace injury.
What it cost: Illustrative numbers: about $31,000 in medical bills and about $14,000 in lost draw, all out of pocket. The election that would have covered both brothers was priced at about $5,800 a year.
The fix: At the next renewal both brothers elected in. Under New Jersey's rule they could not add themselves mid-year, so the gap lasted until the policy renewed. If you plan to be out, make sure your health plan and disability coverage actually pick up work injuries.
Frequently asked questions
Q: Can I exclude myself from workers comp in New Jersey?
If you are a sole proprietor, partner, or LLC member, you are already excluded unless your business elects to cover you. If you are a corporate officer who works in the business, you cannot be excluded. New Jersey has no officer exclusion.
Q: When can an LLC member elect workers comp coverage in New Jersey?
Only when the policy is bought or renewed, and all members must agree. The election cannot be withdrawn during the policy year, so decide before renewal.
Q: Do I need workers comp in New Jersey if I have no employees?
A sole proprietorship, partnership, or LLC with only owners working does not need one. A corporation with a paid working officer does. Your customers may require a policy either way.
Q: How much do I save by excluding myself in New Jersey?
It depends on the job class you would be rated in, what you draw, and your claims history. Ask your broker to quote the policy with the owners in and with the owners out, then compare. The trade-off is that your own injuries are uninsured.
Q: Will my general contractor accept a policy that excludes me?
Sometimes not. Many general contractors require coverage for everyone on site and may charge you back for your pay if you are excluded. Check the contract's insurance section before you decide.
Q: I stayed out and then got hurt. Can I add myself now?
No. In New Jersey the election can only be made when the policy is bought or renewed, and coverage cannot be backdated. A policy change made after an injury does not reach that injury.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Sorting out which New Jersey owners can be excluded, and whether they should be, is a question we answer for contractors every week.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.