# New Jersey contractor insurance requirements

> What New Jersey law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/new-jersey/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: $500K (home improvement)
- Anti-indemnity statute voids: Sole negligence

## Workers' comp in New Jersey

Almost every New Jersey employer must carry workers' comp, including for part-time and seasonal workers. Corporate officers are included. Partners, LLC members and sole proprietors without employees are not, unless they choose coverage.

Agency: [New Jersey Division of Workers' Compensation](https://www.nj.gov/labor/workerscompensation/employer-requirements/index.shtml?open=insurance)

## Contractor licensing and insurance

New Jersey home improvement contractors must register with the Division of Consumer Affairs and carry commercial general liability of at least $500,000 per occurrence.

## Indemnity and additional insured clauses

New Jersey's anti-indemnity statute (N.J. Stat. Ann. §§ 2A:40A-1, 2A:40A-2) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

## What to check on a contractor COI for a New Jersey project

1. **Workers' comp.** Nearly every contractor with employees needs it in New Jersey. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm New Jersey is listed on the workers' comp policy.
2. **General liability.** A New Jersey license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
3. **Additional insured.** The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in New Jersey?

Almost every New Jersey employer must carry workers' comp, including for part-time and seasonal workers. Corporate officers are included. Partners, LLC members and sole proprietors without employees are not, unless they choose coverage.

### Does New Jersey require contractors to carry general liability insurance?

New Jersey home improvement contractors must register with the Division of Consumer Affairs and carry commercial general liability of at least $500,000 per occurrence.

### Can a New Jersey construction contract make a contractor cover another party's negligence?

New Jersey's anti-indemnity statute (N.J. Stat. Ann. §§ 2A:40A-1, 2A:40A-2) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

## Sources

1. [New Jersey workers' comp requirements](https://onpay.com/insights/workers-comp-requirements-by-state/new-jersey/), OnPay, Dec 2025
2. [Home improvement contractor FAQ](https://njconsumeraffairs.gov/hic/Pages/FAQ.aspx), New Jersey Division of Consumer Affairs
3. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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