🛠️ The Ultimate Guide to Getting Workers’ Comp Insurance for Small Businesses (2025 Edition)

Introduction: Why Workers’ Comp Insurance Matters

If you own a business with employees—even just one—you likely need workers’ compensation insurance. It’s more than just a legal requirement in most states, including New Jersey; it’s critical protection for your team and your bottom line.

At Freedom Insurance Solutions, we specialize in affordable workers’ comp insurance for small businesses. This guide will walk you through everything you need to know: what workers’ comp covers, who needs it, how to get it, and how much it costs.

Let’s dive in.

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✅ What Is Workers’ Compensation Insurance?

Workers’ compensation insurance (often shortened to “workers’ comp”) is a type of business insurance that covers:

• Medical expenses for job-related injuries or illnesses
• Lost wages during recovery
• Disability benefits
• Death benefits to families
• Legal expenses if your business is sued

It protects both your employees and your business from financial ruin due to workplace injuries or accidents.

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⚖️ Is Workers’ Comp Required in New Jersey?

Yes. In New Jersey, all businesses with employees—including part-time or temporary workers—must carry workers’ compensation insurance. Even LLCs and sole proprietors with just one helper or subcontractor may be required to carry a policy.

If you don’t have coverage, the New Jersey Department of Labor and Workforce Development can issue:

• Heavy fines
• Stop-work orders
• Criminal penalties

✅ Don’t risk it. Compliance starts with a fast, affordable policy from Freedom Insurance.

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🧱 Who Needs Workers’ Comp Insurance?

Whether you’re a startup or an established business, workers’ comp is essential if you have:

• Employees (even part-time or seasonal)
• 1099 contractors performing physical labor
• Workers on job sites, driving company vehicles, or operating machinery

We insure:

• General contractors & construction companies
• Cleaning & janitorial businesses
• Retail stores
• Delivery & transportation companies
• Restaurants and cafés
• Medical and dental offices
• Real estate and office-based businesses

If your business operates in New Jersey, we’ll help you meet the legal requirements—fast.

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💸 How Much Does Workers’ Comp Insurance Cost?

Workers’ comp insurance costs depend on a few key factors:

Factor	Description
Industry classification (NAICS/NCCI code)	Higher-risk jobs (like roofing or construction) cost more
Payroll size	The higher your payroll, the higher the premium
Claims history	Businesses with past claims may pay more
Business location	Rates vary by state and zip code