Business Insurance in NJ: Costs & Benefits
If you own a business in New Jersey, you should think about getting New Jersey business insurance to protect you from a variety of risks. From daily operations to your employees and business property, there are many situations that could lead to costly claims and lawsuits.
For example, let’s say an employee of yours drives a vehicle for business purposes and gets into an accident. You could get sued and end up paying a lot of money from your own pocket. This is where NJ small business insurance comes in useful.
So what is business insurance NJ? Business liability insurance in NJ covers businesses in case they suffer losses in the course of their usual activities. Types of coverage include professional liability insurance, general liability insurance, cyber liability insurance, business owner’s policy, workers’ compensation insurance, and commercial auto insurance.
In this article, we will talk about what small business insurance is in New Jersey, what it covers, how much it costs, the requirements for NJ business insurance, why you need it, and much more.
What Is Business Insurance in NJ?
Commercial insurance in NJ protects businesses from financial losses that may occur during the usual course of business. There are many business insurance policies, including employee coverage, property damages, business vehicles, and legal liability. Companies decide what policies they need based on potential risks that depend on the type of business they run.
How Does Business Insurance in NJ Work?
New Jersey small business insurance covers financial losses that your business may suffer. For example, if someone breaks into your office and steals your equipment, you must file a claim with your insurance company.
Then the insurance company investigates the claim, and after they assess the damage, they offer you the funds to buy new equipment and replace the damages that were caused during the theft.
However, if someone sues your business, your insurer will probably find you a lawyer to be in charge of your legal defense and defend your case in court. The costs that are related to the lawsuit are paid by the insurance provider up to the policy limits, including lawyer’s fees and other settlement costs.
Who Needs Business Insurance NJ?
Business liability insurance in New Jersey is recommended for all businesses, but there are some professions that can especially benefit from having it, including:
- Contractors
- Manufacturers
- Cleaning services
- Restaurants
- Retailers
- Barbers
- Builders
Business Insurance in NJ Requirements
There are two types of business insurance that are required in New Jersey:
Workers’ Compensation Insurance
In New Jersey, all businesses that have employees must have workers’ comp insurance. This policy covers medical costs for work-related injuries.
Commercial Auto Insurance
In New Jersey, all business-owned vehicles must have commercial auto insurance that covers the cost of accidents. Keep in mind that trucking companies may need additional coverage.
What Does Business Insurance NJ Cover?
Commercial insurance in New Jersey includes several types of business insurance policies, including:
General Liability Insurance
Almost every business in New Jersey should consider having general liability insurance. NJ general liability insurance covers bodily injuries and property damages.
Commercial Auto Insurance
This policy covers damages to your vehicles and trailers. Commercial auto insurance also covers property damages related to their use.
Workers’ Compensation Insurance
This is one of the required policies in New Jersey. Businesses with one or more employees must have workers’ comp insurance that covers medical expenses that may arise from work-related injuries.
Business Owner’s Policy
A business Owner’s Policy or BOP represents a combo of property and liability coverage. This is a great policy for small to medium-sized businesses.
Professional Liability Insurance
If you own a business in New Jersey that offers professional services, you should consider this coverage. The policy (also known as errors and omissions insurance) protects businesses from claims of professional negligence.
Cyber Insurance
Cyber insurance covers data breaches and cyber-attacks. Cyber insurance policy offers first- and third-party protection for data recovery, legal costs, and investigative services. This type of insurance is recommended for businesses that work with customer data.
How Much Does Business Insurance Cost in New Jersey?
The cost of business insurance in NJ varies from $42 to $59 per month, depending on several factors, including:
- Type of business
- Business location
- Number of employees
- Type of policy
- Policy limits
Additional business insurance coverage is as follows:
Policy | Average Cost | Median Cost |
Workers’ Compensation | $47/month | $111/month |
Business Owners’ Policy (BOP) | $53/month | $99/month |
General Liability | $42/month | $65/month |
Professional Liability Commercial Umbrella | $59/month $75/month | $97/month $129/month |
An Example of General Liability Insurance for Sports and Fitness Businesses
General liability insurance in NJ for sports and fitness businesses is less than $30 per month or $350 per year. This policy covers third-party bodily injury, property damages, and advertising injuries.
How to Lower The Costs of Business Insurance in NJ
There are several ways to lower the costs of your small business insurance NJ premium. While having a premium is necessary for responsible business owners, you can still get the most from your insurance and save some money. Here are several ways to do that:
- Minimize risks: Having safety training or risk management review can help minimize the possibility of ever having to make a claim.
- Improve security: Having security systems, fire sprinklers, and safety programs can reduce premium costs.
- Evaluate your premiums annually: Just like everything else, your insurance needs also may change from time to time. Make sure you really need everything that is currently on your insurance plan.
- Pay for the whole year: You can reduce your costs by paying yearly instead of monthly.
- Ask for discounts: Always ask for a discount when shopping for insurance.
Why Choose East Insurance Group?
When you decide to purchase NJ general liability insurance or another policy, you need a trustworthy and experienced insurance agent. At East Insurance Group, our agents will provide you with the information you need and craft an offer that will suit your specific needs.
You can get small business insurance in NJ in all cities, including:
- Newark
- Jersey City
- Paterson
- Trenton
- Atlantic City
- Clifton
- Hoboken
Does New Jersey Require Business Insurance?
The only types of insurance policies required in New Jersey are workers’ compensation insurance and commercial auto insurance. Business owners with more than one employee must carry workers’ comp insurance, and owners who drive their vehicles for business purposes must purchase commercial auto insurance.
Finally, if you own a business in New Jersey, you should consider having business insurance. Business insurance in NJ can help you cover the costs of lawsuits and other unfortunate events that could happen to you during the course of your business. From LLC to general liability insurance in New Jersey, our business insurance premiums can cover all the risks your business could face.
Are you still confused about business insurance NJ or do you need some help with getting a quote for your business? Contact us today and get all the information you need fast and for free!
