State insurance guide
New Jersey Business Insurance Guide 2026
New Jersey requires all employers not covered by federal programs to carry workers' compensation insurance or be approved to self-insure, and out-of-state employers may need coverage if a contract of employment is entered into, or work is performed, in New Jersey. Auto liability minimums and paid leave rules follow, each with its official source.
Explore New Jersey requirements
Open the state requirements checklistNew Jersey requires all employers not covered by federal programs to carry workers' compensation insurance or be approved to self-insure, and out-of-state employers may need coverage if a contract of employment is entered into, or work is performed, in New Jersey (NJ Division of Workers' Compensation, Employer Requirements).
A New Jersey Standard Policy must carry at least $35,000 per person and $70,000 per accident for bodily injury and $25,000 for property damage, while the optional Basic Policy also meets the legal minimum (New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025); NJ DOBI: Standard and Basic Policy comparison). New Jersey runs Temporary Disability Insurance and Family Leave Insurance, funded through payroll contributions (NJ employer rate information).
Checked against official sources on October 3, 2026; the agencies named below decide how a rule applies to a particular business.
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Workers' compensation
Who must carry it: 1 or more employees (owners of partnerships, LLCs and sole proprietorships not counted) (NJ Division of Workers' Compensation, Employer Requirements).
New Jersey law requires that all New Jersey employers, not covered by Federal programs, have Workers’ Compensation coverage or be approved for self-insurance.
Source: NJ Division of Workers' Compensation, Employer Requirements
Exemptions and exclusions
A corporation must be covered when one or more individuals, including corporate officers, perform services for it. Partnerships, LLCs and sole proprietorships must cover anyone other than the partners, members or owner. Governmental agencies must provide benefits but need not buy insurance or be approved as self-insurers (NJ Division of Workers' Compensation, Employer Requirements).
The agency to ask is the New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation. For the coverage itself, see the workers' compensation guide; for a proposal's arithmetic, the workers' comp calculator.
Auto liability minimums
New Jersey offers two policy types that meet the law:
- Standard Policy: at least $35,000 per person and $70,000 per accident for bodily injury and $25,000 for property damage, plus personal injury protection of at least $15,000 per person or accident and uninsured/underinsured motorist coverage (New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025); NJ DOBI: Standard and Basic Policy comparison)
- Basic Policy: no bodily injury liability unless you add it ($10,000 for all persons per accident is available as an option), $5,000 of property damage liability and $15,000 of personal injury protection; the department says it provides enough coverage to meet New Jersey's minimum insurance requirements (NJ DOBI: Standard and Basic Policy comparison)
- In force: for new and renewal Standard Policies from January 1, 2026; from January 1, 2023 through December 31, 2025 the Standard Policy minimums were $25,000, $50,000 and $25,000 (New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025))
Ask your insurer whether these also apply to your commercial and fleet policies.
Before treating the Basic Policy as an option for a business-owned or commercial vehicle, confirm with your insurer that it can be written for that vehicle. The department's bulletin separately told commercial automobile insurers to file rates for the new minimum limits (New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025)).
The second phase of the Act becomes effective January 1, 2026, and applies to all new and renewal policies issued on or after that date.
Source: New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025)
Commercial and for-hire vehicles can face different or higher federal or state requirements, as our commercial auto guide explains.
Paid leave and disability insurance
New Jersey runs both Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) through the Department of Labor and Workforce Development. For calendar year 2026, workers contribute 0.19% for disability insurance and 0.23% for family leave insurance on wages up to $171,100. Employers pay their own assigned disability insurance rate (0.5% for new employers) on the first $44,800 of each worker's wages, and the 2026 maximum TDI weekly benefit is $1,119 (NJ Department of Labor and Workforce Development, Employer rate information).
What employers do: Withhold worker DI and FLI contributions, pay the employer DI contribution at the assigned rate, and file quarterly NJ-927 and WR-30 reports with remittance by the 30th day after each quarter ends (NJ employer rate information).
Other requirements to check
Licenses, leases and client contracts in New Jersey can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states.
Where to verify
- Workers' compensation: New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation
- Auto liability minimums: New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025)
- Paid leave and disability insurance: New Jersey Department of Labor and Workforce Development
Bring the questions from our state requirements checklist when you contact them. If you want PolicyBenchmark to follow up on your New Jersey business, request coverage help.
Frequently asked questions
Does a New Jersey business with one employee need workers' compensation?
Generally, yes: New Jersey applies the requirement from the first employee (NJ Division of Workers' Compensation, Employer Requirements). Exemptions listed above can still apply to particular workers or owners; the agency to ask is the New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation.
Are New Jersey's auto minimums enough for business vehicles?
A Standard Policy needs at least $35,000 per person and $70,000 per accident for bodily injury and $25,000 for property damage (New Jersey Department of Banking and Insurance, Bulletin No. 25-06 (July 31, 2025)). The optional Basic Policy, which the department says also meets the legal minimum, carries lower limits (NJ DOBI: Standard and Basic Policy comparison). Neither is a measure of what a business needs, and commercial and for-hire vehicles can face different or higher federal or state requirements, and leases or clients can ask for more.
Do New Jersey employers pay into a paid leave or disability program?
Yes. Employers must withhold worker DI and FLI contributions, pay the employer DI contribution at the assigned rate, and file quarterly NJ-927 and WR-30 reports with remittance by the 30th day after each quarter ends (NJ employer rate information).
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.