Learn what happens when an employer does not have insurance coverage. Neglecting insurance can result in significant legal consequences, including criminal charges and financial penalties.

1. WHAT HAPPENS WHEN AN
EMPLOYER FAILS TO
INSURE FOR WORKERS’
COMPENSATION?

2. New Jersey law requires all employers in New
Jersey, except for public employers and employers
of domestic workers, to provide workers’
compensation benefits, either through an insurance
policy or through a state-approved self-insurance
plan.

3. FAILURE TO DO SO CAN CARRY WITH IT THE
FOLLOWING LEGAL CONSEQUENCES:
• A disorderly person criminal charge for failing to
insure;
• A charge for a fourth-degree crime, if the action was
willful;
• A fine of $5,000 for the first 10 days and up to $5,000
for each additional 10-day period of non insurance;
and/or
• Personal liability for officers of the company if the
employer is a corporation.

4. The employer cannot discharge the penalties if it goes
bankrupt.
When an employee is injured or killed in a work-related
accident, an employer (including the officers, partners, or
member of a limited liability company) who fails to insure
for workers’ compensation is liable for:
• Medical expenses;
• Temporary or permanent disability;
• Dependent benefits (in case of death); and
• Civil penalties.

5. If you think any New Jersey employer is uninsured for
workers’ compensation, you should notify the
appropriate authorities by calling the New Jersey Office
of Special Compensation funds at (609) 292-0165 or
filling out and mailing or emailing a “Report of Non-
Compliance” form.
You may remain anonymous, but be prepared to give
the name and exact address of the employer and, if you
know this information, the names of the principal
operators of the business.

6. If you have been injured at work, get legal help from an
experienced New Jersey workers compensation attorney.
An experienced attorney can guide you throughout the
legal process, fight for your rights, and help you secure
the compensation you deserve.

7. FOR MORE DETAILS VISIT:
WWW.DMLAWYER.COM