In New Jersey, a partnership must carry workers compensation for any employee who is not a partner, starting with the first hire. The partners themselves are left out of the coverage by default, but the partnership can elect to include partners who actively work in the business.
Who this is for: Partners in a New Jersey general partnership or limited liability partnership (LLP) who want to know whether the firm needs workers comp and whether the partners are covered. Workers comp pays medical bills and part of lost wages after a work injury.
The short version
- Partners: general and LLP partners who actively work are left out of the firm's coverage by default.
- Employees: any non-partner employee, full-time, part-time, or seasonal, must be covered from the first hire.
- Electing in: the partnership can choose to cover its partners, but only at purchase or renewal, and not mid-term.
- Partners-only firm: a partnership with no non-partner employees is generally not required to carry a policy.
- Proof of coverage: clients and general contractors often still ask for a certificate, so many firms carry a policy anyway.
Are the partners covered?
Not by default. New Jersey's Workers' Compensation Law treats an actively working partner as an employee only if the partnership elects that coverage; otherwise partners sit outside the policy. Every non-partner the firm pays as a worker is inside it and must be covered.
| Person | Covered by default? | How to change it |
|---|---|---|
| General or LLP partner who works in the firm | No, left out by default | The firm elects to include partners at purchase or renewal |
| Non-partner employee (full-time) | Yes, must be covered | Cannot be waived |
| Non-partner employee (part-time or seasonal) | Yes, must be covered | No hours minimum |
| 1099 worker you control | Yes, likely an employee | Turns on the control test |
| Family member on the payroll | Yes, must be covered | No general family exemption |
When must the partnership buy a policy?
The test is whether the firm pays anyone who is not a partner. If yes, you need coverage for those employees before they start. A partnership made up only of its partners, with no other staff, is generally not required to carry a policy, though partners can elect in for their own protection, since a partner's on-the-job injury is otherwise not paid by workers comp.
How partners elect coverage
To cover partners, the partnership includes them when the policy is purchased or renewed, and the partners' earnings are counted into the premium. New Jersey does not let you add or drop that election in the middle of the term. Partners in physical trades often elect in; partners in a professional office often do not.
A quick New Jersey example
Illustrative, not a quote. Three electricians run a shop in Camden as a general partnership and employ two apprentices. The three partners are left out of the policy by default, but the two apprentices must be covered from their first day. Because the partners are on the tools daily, the firm elects to include all three partners at renewal. When one apprentice takes a bad shock and needs treatment, the policy pays the medical care and part of the lost wages, and the firm avoids a penalty and stop-work order it would have faced while uninsured.
Real questions New Jersey owners ask
Do the partners in a New Jersey partnership need to be covered?
Not by default. Partners who actively work are left out of the firm's workers comp unless the partnership elects to include them. Non-partner employees, however, must be covered from the first hire.
Our partnership has no employees, only the partners. Do we need a policy?
Generally no. A partnership made up only of its partners, with no other workers, is not required to carry coverage. Partners can still elect in so their own work injuries are covered.
How do partners get themselves covered?
The partnership elects to include partners when the policy is bought or renewed, and their earnings are counted into the premium. The choice cannot be changed in the middle of the policy term.
We hired one part-time helper. Does that trigger coverage?
Yes. New Jersey requires workers comp from the first non-partner employee, with no part-time or seasonal exception, so that helper must be covered before starting.
Is an LLP treated the same as a general partnership?
Yes, for this purpose. Both general partners and LLP partners are left out of coverage by default and can be included only if the firm elects it at purchase or renewal.
A client wants proof of workers comp. We only have partners. What do we do?
You can carry a policy even without non-partner employees so we can issue a certificate of coverage. Many partner-only firms do this to satisfy a client or contractor requirement.
Are 1099 workers we hire counted?
Possibly. If the firm controls how and when the work is done and it is part of your regular business, New Jersey likely treats the worker as an employee who must be covered, regardless of the 1099 label.
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 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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Accounting firm 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.