Updated: December 19, 2024
Advertising & Editorial Disclosure
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.
Based on the analysis provided, Thimble is the top-ranking workers' compensation insurance provider in New Jersey. Here is a detailed look at their ranking, average monthly premiums, financial stability, and customer service:
Ranking
- Thimble is MoneyGeek's highest-rated provider, earning a score of 95 out of 100 for its excellent balance between affordability, customer satisfaction, financial stability, and easy access to online quotes.
Average Monthly Premium
- For businesses with 20 employees and an annual payroll expense of $1,250,000, Thimble offers an average monthly premium of $209. For larger businesses with 100 employees and an annual payroll of about $6,250,000, the average monthly premium is $971.
Financial Stability
- Thimble is noted for being a financially stable provider ensuring that they can cover claims reliably. While specific financial stability ratings (such as those from AM Best) are not provided in the data, the high ranking suggests robust financial health.
Customer Service
- Thimble is highly rated for its customer satisfaction, indicating efficient customer service and a responsive approach to resolving claims and queries. The streamlined online quote process also enhances customer experience by providing easy access to necessary insurance information.
Additional Insights
- Affordability: Thimble is the most affordable workers' compensation insurance provider in New Jersey for businesses of varying sizes, particularly noted for its competitive pricing for different business scales.
- Versatility: Thimble serves a range of business sizes effectively, from micro-businesses to larger companies, adjusting its premiums based on the number of employees and the total payroll expenses.
Employers in New Jersey should consider Thimble as a leading option when seeking workers' compensation insurance. However, it's beneficial to compare quotes from various providers to tailor the best insurance plan to their specific business needs.
The cheapest workers' compensation insurance provider in New Jersey is Thimble, offering an average monthly premium of $209 for businesses with 20 employees and an annual payroll of $1,250,000.
For cost-conscious businesses, Thimble stands out as a great option due to several reasons:
1. Affordability: With an average premium of $209, Thimble provides competitive rates that are below New Jersey's average of $244 for similar businesses. This makes it an attractive choice for businesses looking to manage expenses tightly.
2. Flexible Pricing: Thimble's pricing is structured to accommodate different business sizes and payroll expenses, allowing businesses to find a premium that closely aligns with their unique circumstances.
3. High Rating: Thimble is rated 95 out of 100 by MoneyGeek, indicating strong performance in affordability, customer satisfaction, financial stability, and ease of obtaining quotes online. This high rating provides businesses peace of mind that they are choosing a reliable insurer.
4. Comprehensive Coverage: With policy limits of up to $1 million per accident, per employee, and in total, Thimble assures businesses that they have substantial coverage, which can mitigate financial risks associated with workplace injuries or illnesses.
5. Accessibility: The ease of obtaining quotes online makes Thimble a convenient choice for businesses that prefer straightforward, digital interactions when selecting insurance.
Overall, Thimble's affordable premiums, customer-friendly processes, and comprehensive coverage make it an excellent option for businesses in New Jersey that are focused on cost-efficiency without compromising on the quality of their workers' compensation insurance.
In New Jersey, as in many states, several factors influence workers' compensation insurance premiums. Here’s an overview based on the provided data and context:
Factors Influencing Premiums
1. Number of Employees: The more employees you have, the higher your premiums will likely be. This is because the risk of a claim increases with more people on staff.
2. Payroll Costs: Total payroll expenses are a significant determinant of premiums. Generally, higher payrolls lead to higher premiums, as this indicates more potential liability for the insurer.
3. Employee Class Code: Different jobs have different levels of risk associated with them. Each type of job is assigned a class code that insurers use to calculate premiums. High-risk jobs (like construction) usually have higher rates than lower-risk jobs (like office work).
4. Claims History: A company's history of workers' compensation claims can affect its premium rates. Businesses with more frequent or severe claims may face higher premiums.
5. Business Size and Type: Micro businesses and small businesses are treated differently. For instance, The Hartford is noted as the best provider for micro businesses with five employees, offering lower premiums compared to companies with more personnel.
Variation in Rates
- Thimble vs. The Hartford: Thimble is highlighted as an excellent choice for businesses with different employee counts, offering varied monthly premiums—for instance, $209 for businesses with 20 employees and $971 for those with 100 employees.
- Micro Businesses: For those with five employees, The Hartford offers an average monthly premium of $81, indicating lower costs due to the smaller scale.
- State Average Costs: The average monthly premium in New Jersey for businesses with 20 employees is $244, notably higher than the national average of $168. This showcases how geographic factors can cause significant differences in insurance costs.
Recommendations
- Compare Quotes: Due to the variability in premiums based on unique business needs, it is recommended to compare quotes from different insurers to find the best rates.
- Understand Your Factors: Assess your business's specific attributes, such as employee count, payroll, and job risks, to better anticipate your insurance costs.
- Consult Resources: The New Jersey Department of Labor and Workforce Development can provide guidance and support regarding workers’ compensation regulations and the claims process.
By considering these factors and variations, business owners in New Jersey can more accurately navigate the landscape of workers' compensation insurance and choose a plan that best fits their organizational needs.
Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in New Jersey.
Coverage costs and company information for workers' compensation insurance providers in New Jersey were last updated in 2023.
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?
MoneyGeek used the following weights to score and rank insurers:
MoneyGeek used the following business profile to gather quotes:
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.
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.
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.
| Thimble | $209 | $2,387 |
| The Hartford | $244 | $2,931 |
| Nationwide | $246 | $2,951 |
| biBERK | $277 | $2,931 |
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.
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.
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:
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?
To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:
| 5 | $89 | $1,000 |
| 20 | $244 | $2,800 |
| 100 | $1,069 | $12,798 |
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.
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.
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.
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.
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.
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.
To help you determine the best New Jersey workers’ compensation insurance provider for you, MoneyGeek answered the most commonly asked questions.
Thimble offers New Jersey’s best workers’ compensation insurance at affordable rates, backed by superior financial strength and a convenient online quote application. However, the best insurer for you may vary based on factors unique to your business.
Thimble offers New Jersey’s most affordable workers' compensation insurance, with an average monthly premium of $209. It offers a speedy online quote tool that quickly provides cost estimates. However, the most cost-effective insurer for you may depend on your location, payroll expenses and number of employees.
Yes, employers in New Jersey must have workers’ compensation insurance coverage if they have one or more employees.
In New Jersey, workers' compensation costs a monthly average of $244. Rates for workers' compensation can fluctuate depending on the industry, location, business size and other factors, meaning your specific rates could differ from the average.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
