Best Workers' Compensation Insurance in New Jersey (2023)

We reviewed New Jersey’s workers' compensation insurance providers and ranked them based on affordability, customer satisfaction, financial stability and the accessibility of their online quote process. We found that Thimble is the best insurer in the state.

All New Jersey employers not covered by federal programs or approved for self-insurance must carry workers' compensation insurance. It protects small business owners from legal liability due to an employee’s work-related injury or illness.

Thimble is MoneyGeek's highest-rated workers' compensation insurance provider in New Jersey, earning a 95 out of 100. Its rates are competitive, averaging a monthly cost of $209. However, your rate may differ depending on various details specific to your business.

Thimble is the most affordable provider of workers' compensation insurance in New Jersey, with an average monthly premium of $209 for businesses with 20 personnel and $1,250,000 in yearly payroll expenses. Employee counts and payroll costs can significantly impact insurance premiums, so we recommend comparing quotes from various insurers to get the best rates for your business needs.

We evaluated each New Jersey workers’ compensation insurance provider using average monthly costs to determine the least expensive policy for small companies. The cheapest provider for you may differ based on your unique business needs.

The table below shows New Jersey insurance companies’ monthly and annual average premiums for a business with 20 employees.

In New Jersey, The Hartford is the best workers' compensation insurer for micro businesses with five employees and an average annual payroll expense of $312,500. Its average monthly premium costs $81, but your rate may depend on your business size.

Generally, insurers qualify businesses with less than 10 personnel as micro businesses. A company’s number of employees and annual salary expenses influence the price of workers' compensation insurance, with the latter having a greater impact on premiums.

For New Jersey businesses with 100 employees and an annual payroll of about $6,250,000, Thimble is the best workers' compensation insurance provider. Its monthly premiums cost an average of $971. While the number of employees is an important factor, a company’s total payroll expenses usually impact premiums the most.

In New Jersey, the average monthly cost of workers' compensation insurance for businesses with 20 employees is $244, significantly more than the nationwide average of $168 per month.

We set policy limits at the following amounts for this study:

• $1 million total policy limit
• $1 million per accident limit
• $1 million per employee limit

The total policy limit provides up to $1 million for claims during the policy period. The per accident limit caps liability for a single incident or claim to $1 million. The per employee limit also ensures any liability for a single employee is no greater than $1 million.

Below, we analyzed the average workers’ compensation insurance costs for companies with five, 20 and 100 employees. Note that the major factors influencing premium costs are employee count and payroll expenses.

When calculating your premiums, insurance companies consider many factors, including payroll costs, number of employees, employee class code and the company's claims history.

New Jersey businesses with one or more employees not covered by federal programs must carry workers’ compensation insurance to cover any employee's wages and medical expenses due to a job-related injury or illness.

New Jersey law requires corporations, partnerships/LLCs and sole proprietors to carry workers' compensation insurance. The only exemptions are companies that demonstrate the capacity to pay claims and who receive self-insurance approval.

Workers' compensation insurance provides vital economic support to employees who experience a work-related injury or illness. The employer is the policyholder, so the financial burden does not fall on the employee or their family. This insurance helps cover medical care and rehabilitation costs, disability benefits and lost wages.

The policy can provide financial assistance to the deceased's family in case of a work fatality. Workers' comp insurance offers peace of mind in knowing that proper monetary compensation may be available in the case of a work-related injury or illness while providing employees with a much-needed income during their recovery.

In New Jersey, the Department of Labor and Workforce Development oversees workers’ compensation. The Department is responsible for resolving workers' compensation disputes, providing regulations and protecting workers’ rights.

Employees should notify their employer verbally or in writing to file a claim for workers’ compensation benefits. Once informed, the employer’s workers’ compensation insurance provider will file a First Report of Injury electronically with the state. The injured worker will be directed to a medical provider for treatment if the claim is compensable.

To help you determine the best New Jersey workers’ compensation insurance provider for you, MoneyGeek answered the most commonly asked questions.