Comprehensive Coverage for Construction Professionals

Workers' Compensation Insurance in New Jersey

State-mandated coverage that protects both employees and employers when workplace injuries occur on construction sites.

Overview

Essential Protection for Your Construction Team

Workers' compensation insurance is required by New Jersey law for all construction businesses with employees. It provides medical benefits and wage replacement to employees injured on the job while protecting employers from lawsuits. In the high-risk construction industry, workers comp is not just a legal requirement—it's essential business protection.

  • Required by NJ law for all employees
  • Covers medical expenses and lost wages
  • Protects against employee lawsuits
  • Includes rehabilitation benefits
  • Experience modification available

Quick Facts

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NJ licensed & regulated
Coverage Needs

NJ Workers' Comp Requirements

Mandatory coverage for construction employers

All Employers

Any construction business with W-2 employees must carry coverage

Sole Proprietors

Optional but recommended; often required by GCs

LLCs with Employees

Required even if owners exclude themselves

Subcontractors

GCs require subs to show proof of coverage

High-Risk Trades

Roofers, framers, and demolition have higher requirements

Union Contractors

Must meet union-specific coverage requirements

Coverage Details

What Workers' Comp Covers

Medical Expenses

All reasonable and necessary medical treatment for work injuries

Lost Wages

Partial wage replacement during recovery (typically 70% in NJ)

Disability Benefits

Compensation for permanent partial or total disability

Death Benefits

Benefits to dependents if a work-related death occurs

Rehabilitation

Vocational rehabilitation to return employees to work

Legal Defense

Defense against improper claims

Independent Contractors

Coverage for 1099 contractors (not covered)

Intentional Injuries

Injuries from horseplay or intoxication

Benefits

Benefits of Our Workers' Comp Program

Competitive Rates

Access to multiple carriers ensures best pricing for your class code

Pay-As-You-Go Options

Avoid large deposits with payroll-based premium payments

Safety Programs

Free safety resources to reduce claims and lower premiums

Claims Management

Dedicated claims team familiar with construction injuries

Return-to-Work Programs

Get employees back to work safely and reduce claim costs

Certificate Service

Fast certificate issuance for contracts and compliance

Pricing

Workers' Comp Premium Factors

Construction classification codes
Annual payroll by class
Experience modification factor
Claims history (3-year lookback)
Safety programs and training
Subcontractor usage
Premium payment method
Carrier loss control requirements

Get an accurate quote based on your specific needs

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Real Examples

Common Construction Workers' Comp Claims

Roofer Falls from Ladder

Medical treatment, surgery, and 6 months lost wages

Outcome: $85,000 total benefits paid

Back Injury Lifting Materials

Physical therapy and partial disability

Outcome: $45,000 in medical and indemnity

Circular Saw Accident

Emergency care, surgery, and permanent partial disability

Outcome: $125,000 lifetime benefits

FAQ

Common Questions About Workers' Compensation Insurance

What are typical workers' comp rates for construction in NJ?

Rates vary significantly by trade. Clerical work may be 0.5% of payroll while roofing can exceed 20%. Your specific rate depends on classification, experience mod, and claims history. We'll provide exact rates for your business.

Can owners exclude themselves from coverage?

In New Jersey, sole proprietors, partners, and LLC members can exclude themselves but must file specific forms. However, many general contractors require all individuals on site to be covered, so exclusion may limit your work opportunities.

What is an experience modification factor?

Your "mod" compares your claims history to similar businesses. New businesses start at 1.0. Good safety records can reduce it below 1.0 (saving money), while poor records increase it above 1.0 (costing more).

Do I need workers' comp for 1099 subcontractors?

Generally no, but NJ strictly enforces employee classification. If the state determines your "1099s" are actually employees, you'll owe back premiums, penalties, and potential claims. We recommend proper classification review.

What happens if I don't have workers' comp?

Operating without required coverage in NJ results in stop-work orders, fines of $5,000+, personal liability for all medical costs, and potential criminal charges. It also disqualifies you from most construction contracts.

Related Coverage

Complete Your Protection

Consider these additional coverages for comprehensive protection

General Liability

Third-party injury protection

Learn More

Disability Insurance

Income protection for owners

Learn More

Employment Practices

Protection from employment lawsuits

Learn More

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