Short answer: New Jersey requires every employer not covered by a federal program to carry workers' compensation or self-insure, with no headcount minimum. Employers must also take part in the state's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs through payroll contributions, unless they have a state-approved private plan. As of January 1, 2026, the minimum auto liability is $35,000/$70,000 bodily injury and $25,000 property damage.
This guide is general information for New Jersey employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
Every New Jersey employer not covered by a federal program must carry workers' comp or be approved to self-insure. There's no payroll or headcount minimum. Details: is workers comp required in New Jersey.
2. TDI and FLI
Per the Division of Temporary Disability and Family Leave Insurance, employers take part in the state TDI and FLI programs and withhold employee contributions through payroll. Employers also pay a TDI contribution; FLI is employee-funded. The alternative is a private plan, which must be approved by the state before it takes effect and must meet or exceed the state plan's benefits. Contribution rates and wage bases change annually; check the Division's page.
3. Business vehicles
Per the NJ Department of Banking and Insurance, the minimum liability on a standard policy as of 2026 is $35,000/$70,000 bodily injury and $25,000 property damage, plus PIP. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage New Jersey makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, New Jersey employers are covered once you meet the coverage test of $1,000 in any year. The 2026 taxable wage base is $44,800 per employee. Experience-rated employers pay 0.5% to 5.8%, and new employers start at a base rate of 2.8% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than New Jersey law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Jersey.
Frequently asked questions
Do New Jersey employers have to provide disability insurance?
Yes, through the state TDI program or an approved private plan.
What's the minimum auto liability in New Jersey for 2026?
$35,000/$70,000 bodily injury and $25,000 property damage on a standard policy.
Is there a headcount minimum for workers' comp in New Jersey?
No.
Do New Jersey employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $44,800, and new employers start at 2.8%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.