What Are Common Small Business Insurance Requirements in New Jersey?

Business insurance provides financial protection in the event a claim is filed against your business.

With few exceptions, New Jersey businesses with one or more employees are required to have workers’ compensation insurance or be approved for self-insurance. Also, business-owned vehicles must have commercial auto insurance.

Workers’ compensation insurance pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. Your insurance company may also provide resources designed to assist your business in developing safe working habits to help control insurance costs.

Although not required by state law, here are other business insurance policies you may want to consider getting:

  • Business income:
    Provides protection for lost net income; mortgage, rent, and lease payments; loan payments; taxes; and employee payroll. Requires that the damages be caused by a covered loss resulting in physical damage to the property.

  • Businessowners policy (BOP):
    A policy that combines property, liability, and business interruption coverages for small- to medium-sized businesses. Coverage is generally less expensive than if purchased through separate insurance policies.

  • Commercial auto:
    Covers the cost to repair or replace vehicles (less depreciation) in the event of an accident, as well as the cost to rent a replacement auto so that your business can continue operating.

  • Commercial property:
    Protects your business's physical assets from perils such as fire, explosions, burst pipes, storms, theft, and vandalism.

  • Cyber insurance:
    Can provide liability protection for a data breach involving sensitive customer information, such as social security numbers, credit card numbers, account numbers, driver’s license information, and health records.

  • Employment practices liability:
    Liability coverage for wrongful termination, discrimination, and other violations of employees’ legal rights.

  • Errors and omissions:
    A professional liability policy protecting the policyholder against negligent acts and omissions that harm their clients.

  • General liability:
    Insures against the liability exposures of many businesses. Coverage can include product liability, completed operations, premises and operations, and independent contractors. This coverage is best obtained through a BOP, which includes other essential coverages for small businesses.

Before deciding which policy is best for your business, be sure to contact a licensed business insurance broker or agent who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have.

An independent agent can help business owners understand which products can best meet their needs.

Learn more about small business insurance requirements in New Jersey.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.

The information contained in this article should not be construed as professional advice, and is not intended to replace official sources. Other resources linked from these pages are maintained by independent providers; therefore, NJM cannot guarantee their accuracy.