In New Jersey, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and New Jersey's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in New Jersey, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in New Jersey?
Mandatory for all New Jersey employers not covered by a federal program, from the first compensated worker — no employee threshold and no minimum payroll.
Can owners and officers be included or excluded in New Jersey?
| Sole proprietor | Excluded by default; may elect in. |
|---|---|
| Partners | Excluded by default; may elect in. |
| LLC members | Excluded by default (treated like partners); may elect in. |
| Corporate officers | Active, compensated executive officers are covered by default; there is no minimum-payroll or single-officer exemption. |
How to make the election in New Jersey
- New Jersey Workers Comp Inclusion-Exclusion Form (LLC-Partnership-SoleProp)
- Official source: New Jersey Division of Workers' Compensation
Payroll counted for an included owner in New Jersey
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2026), set by NJCRIB.
| Included owner/officer minimum | $860 per week |
|---|---|
| Included owner/officer maximum | $3,430 per week |
$860–$3,430/week (~$44,720–$178,360/yr).
These amounts update periodically; we confirm the current figure for your policy. Source: NJCRIB Circular Letter 2510 (Executive Officers' Payroll).
New Jersey's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through New Jersey assigned risk plan, administered by the New Jersey Compensation Rating and Inspection Bureau (NJCRIB). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
New Jersey business insurance · Workers' compensation coverage · New Jersey Division of Workers' Compensation.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in New Jersey?
It depends on your entity and role. Excluded by default; may elect in. Active, compensated executive officers are covered by default; there is no minimum-payroll or single-officer exemption. Employees are always covered.
How do I include or exclude an owner from workers' comp in New Jersey?
The right form, portal, or endorsement depends on your entity type. New Jersey publishes its own form, which we complete and file with you.
What payroll is used for an included owner in New Jersey?
$860–$3,430/week (~$44,720–$178,360/yr). We confirm the current figure for your policy.
Can Cory Washington & Co. handle my New Jersey workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.