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Small businesses in New Jersey are responsible for writing paychecks for more than 1.9 million employees, representing almost half of all workers in the Garden State.1

The owners of these small companies protect their establishments and employees with NJ business insurance, which can provide a financial safety net to cover unexpected expenses when things go wrong.

It can help keep your business on track after accidents and events such as:

  • Injuries to non-employees, including clients
  • Damage to someone else’s property
  • Claims of professional negligence
  • Employee injuries on the job
  • Auto accidents while driving for business

NEXT insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.

Continue reading to learn about important types of commercial insurance in NJ. Or get a free instant quote to see customized coverage options for your business.

Small business insurance in NJ

Insurance companies typically sell New Jersey businesses coverage in packages customized for your needs.

Depending on your profession and business operations, your insurance package might include different types of insurance, also called insurance products or policies.

Each kind of insurance provides protection for specialized situations. For this reason, it’s a good idea to purchase all the kinds of coverage required for your business needs.

For example, general liability insurance in New Jersey can help protect against financial losses if you’re accused of causing physical injury to a non-employee or damaging their property. However, if one of your employees gets hurt on the job, you would need workers’ compensation coverage.

Other types of business insurance coverage purchased in New Jersey include professional liability coverage, commercial auto insurance and commercial property insurance.

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More about types of New Jersey business insurance

Ready to learn about the different kinds of business coverage insurance carriers offer? Keep reading below to discover how business liability insurance and other types of policies can protect your New Jersey small business.
General Liability insurance
General Liability insurance NJ

General liability coverage, also called commercial general liability insurance, is one of the most common and important forms of business insurance in New Jersey.

If someone claims that your business caused injury or destroyed property, general liability insurance can help pay for damages and lawsuit costs if you’re sued.

For example, a homeowner accuses a Newark-based HVAC company of improper wiring that starts a fire and causes significant damages. General liability insurance could help cover the cost of repairs and pay attorney fees if the client takes the HVAC company to court.

Construction and cleaning companies in New Jersey might want to add tools and equipment coverage to their general liability policy. This optional coverage can help pay to repair or replace work gear that’s lost, stolen or damaged outside of normal wear and tear.

Workers' comp insurance
Workers’ Compensation insurance

New Jersey state law requires most businesses with employees to carry workers’ compensation coverage. This kind of coverage provides protection when employees are hurt on the job, and can help cover medical bills and lost wages during their 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 could help pay for their medical expenses, physical rehabilitation bills and cover lost wages while they get better.

Commercial auto insurance
Commercial Auto insurance

Did you know that personal car insurance might not cover accidents that happen while you or your employees are driving for work? That’s why New Jersey requires small businesses that own vehicles to have commercial auto insurance.

Here’s an example of how commercial auto can help cover medical costs, vehicle damage and legal defense costs after business driving mishaps:

A self-employed Jersey City carpenter hits a toll booth while driving to a job in New York City, damaging his van and requiring a tow truck and an ambulance. Commercial auto coverage could help pay for vehicle damages and the hospital visit. If the tolling authority decided to come after him for damages, coverage could help pay legal defense fees.

Commercial auto insurance packages in New Jersey may include hired and non-owned auto coverage. This optional insurance upgrade can help pay for business accident damages for employees who occasionally drive their own cars for work or rent vehicles.

Commercial Property Insurance
Commercial Property insurance

Commercial property insurance in New Jersey can protect the things you need to run your business, such as equipment, inventory and even your business location if you own the property.

For example, a hotel restaurant in Cape May experiences a sprinkler malfunction in the dining room that ruins the furniture and carpeting. Commercial property insurance could help pay to clean up the mess and replace the damaged business property.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations prone to flooding or hurricane damage might have limited coverage.

Errors & Omissions
Professional Liability (E&O) insurance

Professional liability insurance, which is also called errors and omissions coverage, assists small businesses when they’re accused of professional negligence.

Omissions insurance can help cover costs related to claims of subpar work, missed deadlines or incomplete jobs that cause financial losses. This type of coverage can help businesses compensate clients for work mistakes and includes legal defense benefits.

For instance, the owner of a Trenton office building says that a carpet cleaning company forgot to service a tenant’s boardroom the night before an important meeting. As a result, the tenant canceled its lease, and the landlord lost rental income.

Professional liability coverage could help the cleaners cover any out-of-court settlements, along with legal costs if the building owner filed a lawsuit.

How much does business insurance in New Jersey cost?

How much does business insurance in New Jersey cost?

Business insurance packages in New Jersey will be priced based on your company’s insurance requirements. Some of the factors that will affect your cost include:

Your profession and risk profile

Industries that have greater risk of injury and property damage can expect to pay more each month for coverage. For example, construction companies in New Jersey will likely have a larger business insurance bill than professional services firms.

The coverage options you select

While you might be tempted to omit some types of recommended coverage when purchasing your insurance package, this may not be in your best interest. Although it could save a little money every month, this can put you at risk of paying out of pocket if you don’t have the right coverage when an accident happens.

Number of employees

Most states determine workers’ compensation insurance costs based on the amount of workers on your payroll. Providing up-to-date employee numbers for your insurance quote is the best way to get an accurate price.

The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.

You can also use our insurance calculators for a general estimate of insurance costs in New Jersey:

How NEXT can help you with business insurance in New Jersey

How NEXT can help you with business insurance in New Jersey

We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.

You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.

Resources for New Jersey small businesses and self-employed workers

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.