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.
Best Workers’ Compensation Insurance in New Jersey
Best Workers’ Compensation Insurance in New Jersey
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.
How was this MoneyGeek score calculated?
- A+ rating from AM Best
- Most affordable insurer in our comparison group at an average monthly premium of $209
- Fast online quote application
- Poor customer service record
Thimble is a highly rated insurance company that provides reliable workers’ compensation insurance in New Jersey. Industry leader AM Best awarded the company a superior A+ rating due to its dependable financial stability. It also offers a consumer-friendly online quote system that enables small businesses to get quotes quickly. Thimble provides the most affordable average monthly premiums of all the insurers we analyzed at $209.
On the downside, MoneyGeek’s research found that Thimble receives higher-than-average customer complaints, meaning its customer service record is lacking.
- Workers’ compensation policy costs a monthly average of $244
- Outstanding customer satisfaction rating
- Superior (A+) rating from AM Best for financial strength
- Efficient online quote process
The Hartford is one of New Jersey’s best workers’ compensation insurance companies. Premiums from The Hartford average $244 per month, making it one of the least expensive insurers in the state.
The NAIC’s (National Association of Insurance Commissioners) complaint index data shows that The Hartford has a lower-than-average customer complaint rating, demonstrating its quality service. Its financial stability means that you can depend on this insurer to meet its claims obligations. Interested consumers can get online quote estimates in less than a minute and a half, making it easy to compare rates.
- Monthly premium averages $246
- Superior financial stability rating
- Excellent customer service record
- Slow online quote application
Nationwide is MoneyGeek’s pick for the third-best workers' compensation insurance provider in New Jersey. It earned a score of 90 out of 100 in our analysis. Nationwide is a dependable insurer, as evidenced by its strong financial backing.
The company’s average monthly premium is $246, which is moderate compared to its competitors. Nationwide has a low rate of customer complaints, meaning it delivers reliable service to its policyholders. However, it has a slow online quote system, making it difficult for customers to compare premiums quickly.
- Expensive average monthly premiums of $277
- A++ rating for financial stability from AM Best
- Excellent customer satisfaction record
- Less than a minute and half to get an online quote
biBERK is a workers’ compensation insurance provider that specifically caters to the needs of small businesses. biBERK earned a superior rating for its financial strength, meaning it can promptly pay its claims. The company provides dependable insurance with quality customer service.
Customers can swiftly access online quotes due to its speedy service. However, the company offers New Jersey’s most expensive premiums, costing around $277 monthly.
Cheapest Workers’ Compensation Insurance in New Jersey
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.
Thimble offers the cheapest premiums in New Jersey for businesses with a workforce of 20 and an annual payroll of $1,250,000, with $209 average monthly premiums. These rates could vary depending on your business’s profile.
If you want to save money on workers' compensation insurance, Thimble is likely your best option. It also offers a swift online quote application for your convenience, so you can easily compare rates. However, it has a higher-than-average complaint rating, indicating poor customer service.
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.
Best Workers’ Compensation Insurance for Micro Businesses in New Jersey
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.
The Hartford earned a MoneyGeek score of 99 out of 100 to emerge as our top pick for micro businesses. This insurer notably balances affordability and excellent customer service, with a record of few customer complaints. It offers the cheapest average monthly premiums of any New Jersey company we analyzed at $81. If you seek micro business insurance from The Hartford, you can get a convenient online quote in less than 90 seconds.
Best Workers’ Compensation Insurance for Midsize Businesses in New Jersey
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.
Thimble earned an A+ rating from AM Best for its financial strength, meaning it can quickly pay out its policyholders’ claims. It also has the most affordable premiums in the comparison group at a monthly average of $971, while its closest competitor, The Hartford, charges $1,114.
Interested business owners can access quotes from Thimble in less than a minute through its online application. However, the company’s customer service record is less than stellar, receiving frequent customer complaints.
How Much Is Workers’ Compensation Insurance in New Jersey?
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.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in New Jersey
When calculating your premiums, insurance companies consider many factors, including payroll costs, number of employees, employee class code and the company's claims history.
Insurance companies typically set their rates per $100 of payroll based on the state and industry the business operates in. In 2022, the rate per $100 of payroll in New Jersey was relatively high at an average of $2.44, far above other states' rates.
Number of employees
The size of a business in New Jersey can impact how much it must pay for workers’ compensation insurance premiums. Companies with more staff are more likely to incur a claim, resulting in more expensive premiums.
Employee class code
In New Jersey, insurers link employee class codes to the type of jobs employees have, affecting the rate charged for each $100 of payroll. The riskier the position (i.e., construction or industrial), the higher the premiums, whereas jobs associated with lesser risks generate lower premiums.
In New Jersey, the frequency and cost of claims a business has incurred in the past can influence the cost of workers' compensation premiums, with businesses that have had numerous or costly claims potentially paying higher rates than those with few or no claims.
U.S. Bureau of Labor Statistics data for 2021 found 70,500 nonfatal workplace illnesses and injuries in private-industry businesses in New Jersey. On a national level, there were 2,607,900 incidents.
Do You Need Workers’ Compensation Insurance in New Jersey?
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.
If an employer fails to get workers’ compensation coverage, they could face serious consequences. This violation is considered a disorderly person offense. It is punishable by law, with fines of up to $5,000 for the first 10 days of failure to provide coverage and $5,000 for each additional 10-day period. The state may also hold corporate officers liable as individuals.
What Does Workers’ Compensation Insurance Cover in New Jersey?
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.
Workers’ Compensation Insurance Resources for Employees in New Jersey
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.
Frequently Asked Questions About Workers’ Compensation Insurance in New Jersey
To help you determine the best New Jersey workers’ compensation insurance provider for you, MoneyGeek answered the most commonly asked questions.
About Melissa Wylie
- Department of Labor. "State Workers' Compensation Officials." Accessed May 24, 2023.
- Department of Labor and Workforce Development. "Workers Compensation." Accessed May 24, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 24, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 24, 2023.