In New Jersey you get workers compensation by buying a policy from any private insurer authorized in the state, and there is no state fund you have to use. If no insurer will cover you voluntarily, New Jersey has an assigned-risk plan that serves as the insurer of last resort, so you can always get covered.
Who this is for: New Jersey owners who need to put workers comp in place, including those who have been turned down by an insurer. Workers comp pays medical bills and part of lost wages after a work injury.
The short version
- Buy from a private insurer: New Jersey has no state fund, so coverage comes from private carriers.
- Shopping helps: an independent agent can compare insurers and place you where your trade fits.
- Turned down? There is a backstop: the state's assigned-risk plan covers businesses no insurer will take voluntarily.
- Have your details ready: payroll by role, your business type, and your claims history speed up a quote.
- Coverage before day one: put the policy in force before your first employee starts.
The normal path: the voluntary market
Most New Jersey businesses get covered in what is called the voluntary market, meaning a private insurer chooses to write your policy. Because New Jersey uses state-set base rates, insurers compete mostly on service, how they handle audits, and dividend programs, so it pays to compare rather than take the first quote. An independent agent shops several carriers for you.
| Step | What happens |
|---|---|
| 1. Gather your details | Payroll by role, business type, and any past claims |
| 2. Shop the voluntary market | An agent compares authorized private insurers |
| 3. If declined, use the assigned-risk plan | The state's plan places you with a servicing insurer |
| 4. Bind coverage | Put the policy in force before the first employee works |
| 5. Get your certificate | Proof of coverage for clients, landlords, or contractors |
If you have been turned down
Some businesses, new ventures, tough trades like roofing, or those with a rough claims history, get declined in the voluntary market. New Jersey's answer is the Workers' Compensation Insurance Plan, the state's insurer of last resort, often called the assigned-risk plan. You apply through it and get assigned to a servicing insurer that has to cover you. It may cost more than the voluntary market, but it guarantees you can meet the legal requirement and stay open.
What to have ready
A quote goes faster when you have your payroll broken out by the kind of work each person does, your business structure, an estimate of your annual sales, and any prior claims. If owners want to be covered, decide that up front, because in New Jersey the election is made when the policy is bought or renewed and cannot be changed mid-term.
A quick New Jersey example
Illustrative, not a quote. A new roofing company in Trenton struggles to find an insurer because roofing is high-risk and the business has no track record. After a couple of declines in the voluntary market, we place it through the state's assigned-risk plan, which assigns a servicing insurer that must cover the crew. The company gets its certificate the same week and starts a subcontract for a general contractor who required proof. A year later, with a clean claims record, we move it back into the voluntary market at a better price.
Real questions New Jersey owners ask
Where do I buy workers comp in New Jersey?
From any private insurer authorized in New Jersey. There is no state fund you must use. An independent agent can compare several insurers and place you where your kind of work fits best.
No insurer will cover my business. What now?
You can get covered through New Jersey's assigned-risk plan, the insurer of last resort. You apply and are assigned to a servicing insurer that must cover you, so you can always meet the requirement.
How fast can I get coverage?
Often within the same day or a few days once we have your payroll and business details. We can usually issue a certificate of coverage the same business day for most carriers after the policy is bound.
What information do I need for a quote?
Your payroll broken out by the kind of work each person does, your business type, an estimate of annual sales, and any past claims. If owners want coverage, decide that before you buy.
Is the assigned-risk plan more expensive?
It often costs more than the voluntary market because it covers businesses insurers declined. It is meant as a backstop, and many businesses move back to the voluntary market once they build a clean claims history.
Do I need coverage before my first employee starts?
Yes. New Jersey requires coverage from the first employee, so put the policy in force before their first shift to avoid penalties and a possible stop-work order.
Can you help me switch insurers at renewal?
Yes. Because New Jersey base rates are more uniform, we focus on service, audit handling, and dividends when shopping your renewal, and we can move you if a better fit exists.
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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Glossary: workers comp class code
- Roofer 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.