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Are you personally liable for your employees?

Workers Compensation

Every state has different rules when it comes to Workers Compensation coverage. Many companies are not aware that there may be a rule or regulation that states that YOU, as the business owner, may be paying out of pocket for your employees injuries if you do not have a policy in place.

Below is some basic information about Workers Compensation coverage in NJ. If you do not conduct business in NJ, contact us and we will provide information about your state’s rules and regulations.


Corporations

All corporations operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, including corporate officers, perform services for the corporation for prior, current or anticipated financial consideration.

Sole Proprietorship

All sole proprietorships operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding the principal owner, performs services for the business for prior, current or anticipated financial consideration.

Partnerships/LLCs

All partnerships and limited liability companies (LLCs) operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding partners or members of the LLC, perform services for the partnership or LLC for prior, current or anticipated financial consideration.


Penalties for Failure to Insure

  • Can be assessed up to $5,000 for the first 10 days with additional assessments of $5,000 for each 10-day period of failure to insure thereafter

 

  • In the case of a corporation, liability for failure to insure can extend to the corporate officers individually

 

  • The employer including individual corporate officers, partners or members of an LLC, is directly liable for medical expenses, temporary disability, and permanent disability or dependency benefits

 

  • NJ Law also provides for civil penalties against the employer and its officers where failure to insure is determined; which can become liens against the employer and its officers