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Workers’ Compensation Insurance in New Jersey: Who Needs It?

If you’re considering joining the growing number of people opening new businesses in New Jersey, you may be wondering whether workers’ compensation insurance is something you need to worry about. Designed to protect businesses in the event that an employee is injured, sickened or intent on filing a lawsuit, this type of new business insurance in Princeton NJ is intended to protect your lifeblood from financial ruin. Here’s a closer look at what types of businesses in New Jersey need this type of coverage.

Sole Proprietors

If you own a sole proprietorship in New Jersey and employ one or more other people who perform work in exchange for money, you need workers’ compensation insurance.

Partnerships & Limited Liability Companies

Similar to sole proprietorships, any partnerships or limited liability companies that employ one or more individuals and charge fees for their products or services, or anticipate doing so in the future, must hold a workers’ compensation insurance policy in the state of New Jersey.


The rules regarding workers’ compensation insurance that pertain to corporations aren’t remarkably different than those in place for sole proprietorships, partnerships and limited liability companies. Corporations that once charged, currently charge or anticipate charging money for goods or services in the future and employ one or more individuals need this type of new business insurance in Princeton NJ.

Insurance needs differ from one company to the next. If you are still unclear about your company’s specific insurance needs, speak with your insurance provider.