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New Jersey Business Insurance

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Business insurance in New Jersey

Although New Jersey is one of the smallest states by land area, it is home to more than 860,000 small businesses, the eleventh highest amount in the country.1

All small companies based in the Garden State will need some combination of business insurance to help protect against events like:

  • Injuries to other people, including clients
  • Damage to someone else’s property
  • Accusations of professional negligence
  • Employees injuries
  • Auto accidents that happen when driving for work

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in New Jersey or start a free instant quote to review options for your business.

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How Next can help you with business insurance in New Jersey

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

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Business insurance coverage and requirements in New Jersey

The types of business insurance you’ll need and your policy limits depend on several factors, such as:

  • Risk profile. How dangerous is your profession?
  • Your industry
  • Number of employees you have

Small business insurance packages in New Jersey usually include some combination of:

As in other states, how much damage business insurance in New Jersey covers depends on your policy limits.

 

General Liability insurance 

General liability coverage is one of the most common and important forms of business insurance in New Jersey.

If someone claims that your actions caused injury or destroyed property, general liability insurance helps pay for damages and potential lawsuit costs.

For example, a homeowner accuses a Newark-based heating installation company of improper wiring that starts a fire and causes $50,000 in damages. General liability insurance helps cover the costs of repairs and legal costs if the client sues.

Tools and equipment coverage is a form of business insurance in New Jersey that applies to construction and cleaning companies. This coverage helps pay to replace or repair business items that are stolen, damaged or lost.

 

Professional Liability (E&O) insurance 

Even the most careful small business owners might make a work error or face accusations of a mistake.

In such cases, professional liability coverage, or errors and omissions (E&O) insurance, can make sure that such allegations don’t sideline your business. This coverage helps pay for costs associated with work negligence, including attorney fees, court costs and damages if you are held liable.

Professional liability insurance in New Jersey would help in the following situation: 

The owner of an office building in downtown Trenton says that a carpet cleaning company forgot to service an important client’s headquarters before a board meeting. The tenant cancels its lease, and the landlord loses rental income. 

E&O coverage would help the cleaners cover any out-of-court settlements, along with legal costs if the building owner files a lawsuit.

 

Workers’ Compensation insurance

New Jersey requires businesses with employees to carry workers’ compensation coverage

If someone gets hurt while doing their job, workers’ comp insurance assists the injured employee and the business owner by helping cover medical bills and lost wages during recovery.

For example, two employees at a construction company in Paterson suffer back injuries while moving a beam on the job, leaving them unable to work for a month. Workers’ comp helps pay for medical expenses, physical rehabilitation and lost wages.

 

Commercial Auto insurance

New Jersey requires businesses that own vehicles to carry commercial auto insurance.

State law allows you to choose policies that cover between $15,000 and $250,000 in damages,2 but opting for less expensive coverage probably means that you’ll pay more out of pocket if you have an accident.

For instance, a self-employed carpenter in Jersey City has a wreck in the Lincoln Tunnel on the way back from a job in Midtown Manhattan, damaging a company van and requiring a tow truck. Commercial auto coverage helps the carpenter cover accident damages up to the policy’s limits.

Commercial auto insurance packages in New Jersey might include hired and non-owned auto coverage. This insurance upgrade helps pay for damages if employees who occasionally drive their own cars for work or rent vehicles have an accident.

How much does business insurance in New Jersey cost?

Small business packages in insurance in New Jersey typically cost about $64 per month, according to Next Insurance data.

Your company’s costs will vary based on factors such as:

Regular risk factors in your industry. Industries that have greater risks of injury and property damage can expect to pay more each month for coverage. Construction companies in New Jersey pay a median of $86 dollars per month while professional services providers spend about $25.

The types of insurance you buy and your policy limits. While you might be tempted to omit some forms of coverage or choose lower policy limits when buying an insurance package, this may not be in your best interest. Though you’ll save a little money every month, you’ll likely pay more if you need to file a claim with your provider.

How many people you employ. How much you’ll pay for workers’ comp insurance depends on how many people are on your payroll. Make sure that you have accurate employee numbers before you request an insurance quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

 

More resources for New Jersey small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in New Jersey:

Article sources: 

  1. New Jersey Office of Small Business Advocacy
  2. State of New Jersey Department of Banking and Insurance