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When launching or managing a small business in New Jersey, you must protect your venture with proper insurance. This coverage protects against unexpected financial setbacks caused by property damage, lawsuits, employee injuries, and other mishaps, ensuring your business’s financial health and operational stability.
Some providers, like Next Insurance, stand out by offering specialized services tailored to small businesses. Next, Insurance makes the insurance process straightforward with customized policies designed to meet specific business risks.
This guide will help you find the insurance expert that matches your budget and business style, equipping your enterprise to handle any unexpected challenges.
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What Business Insurance Policies Do You Need in New Jersey?
State regulations influence the business insurance coverage you require. These policies are mandatory across New Jersey, from Trenton to Newark.
Workers’ Compensation Insurance
Workers’ compensation insurance is essential if an employee suffers work-related injuries or illnesses. It covers medical treatment, lost wages, rehabilitation, and disability benefits. This policy is crucial for New Jersey businesses, both full-time and part-time, as it’s a state requirement.
Besides helping employees, it protects small business owners by covering legal costs should an injured worker or their family sue. An example includes a cleaning company employee who becomes ill from cleaner fumes; this policy would cover their medical and disability expenses.
Commercial Auto Insurance
In New Jersey, businesses that own vehicles must have commercial auto insurance. This covers expenses from accidents involving company cars. Say an employee, on a delivery run, hits a pedestrian. This insurance kicks in to cover the pedestrian’s medical costs.
The state requires both basic and standard policies. Under the standard option, coverage includes at least $30,000 per accident for bodily harm, $15,000 per person, $5,000 per mishap for property damage, and $15,000 for personal injury protection. Trucking outfits may need extra coverage due to specific rules.
Although not mandatory, personal vehicles used for business purposes should be covered by Hired and Non-owned Auto Insurance (HNOA), which can be included in a general liability or business owner’s policy, since personal auto policies typically exclude business use.
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Top 7 Companies for Small Business Insurance
Next offers a comprehensive selection of commercial insurance types that can be purchased online for immediate coverage. Their offerings include a business owner’s policy, which bundles general liability and commercial property insurance, commercial auto insurance, workers’ compensation, professional liability insurance, tools and equipment insurance, and more.
Additionally, Next provides several digital tools for policy management. These tools allow policyholders to instantly share a live certificate of insurance and add additional insured parties at no extra cost. Customers can also opt for monthly payment plans and may qualify for up to 25% in discounts.
Next Insurance, headquartered in Palo Alto, California, was established in 2016. The company leverages artificial intelligence and machine learning to make the insurance purchasing process more efficient. With an A- (Excellent) financial strength rating from AM Best, Next stands out in the industry. However, it’s noted that some other companies may offer more specialized coverages, like cyber liability insurance.
Next allows you to secure a variety of business insurance coverages online in approximately ten minutes. However, if you prefer a more personal touch, you can also speak with a U.S.-based insurance advisor in your area.
The benefits of choosing Next in New Jersey include the ability to share a live certificate of insurance, the option to tailor your business insurance with various coverages, and a fully online quote and application process with additional support available if needed.
Hiscox is highly recommended for freelancers. It’s recognized as the top provider of independent contractor insurance among small commercial insurers. They offer a customizable business owner’s policy (BOP) that includes options like business interruption, electronic data loss, and professional liability insurance.
Hiscox also allows for standalone professional and general liability policies with on-demand coverage for short-term projects and supports freelancers with manageable monthly payment options.
While Hiscox maintains an A (Excellent) rating from AM Best, indicating strong financial stability, the company has seen a higher volume of complaints than typical for its size over the past three years. However, there’s a noticeable year-over-year decrease in complaints, showing improvements in customer satisfaction. Hiscox’s policies, including BOPs, start at around $500 per year.
The company also offers significant advantages in New Jersey, such as customization for independent contractors, fee-free monthly payments, short-term liability insurance, and a fully online quote and application process with available support.
Simply Business makes it easy to compare quotes and coverage options from leading insurers such as Hiscox, which helps you find the best fit for your needs. With the ability to secure policy options online in under 10 minutes, Simply Business streamlines obtaining insurance.
If you require further help or have any queries, licensed agents are readily available via phone. This service benefits businesses and sole proprietors, offering tailored insurance recommendations based on your specific industry, be it landscaping, accounting, or photography.
While Simply Business doesn’t directly handle claims, this is managed by the provider you choose, it supports you by facilitating access to policy documents and connecting you with your provider for any needed help.
The advantages of using Simply Business in New Jersey include a quick quote process, support from licensed agents, and a selection of top insurance providers to choose from.
Tivly provides a one-stop online shopping experience for various business insurance policies. Enter your details on their website and receive a quote tailored to your business needs. Tivly collaborates with over 200 insurance providers, ensuring they match you with the one that best suits your requirements, particularly for safeguarding your financial interests.
Their network includes prominent providers such as Progressive and The Hartford, allowing you to secure business income insurance, liability coverage, and other essential protections for your enterprise.
The benefits of using Tivly in New Jersey include an easy quote process, a wide network of over 200 partnered providers, and a personalized matching service to find the ideal insurance solution for your business.
Searching for business insurance can often be a lengthy and cumbersome process, requiring the collection and comparison of many quotes and coverage options. However, CoverWallet simplifies this ordeal by providing a straightforward platform to obtain quotes from several esteemed insurance providers such as Hiscox and Progressive.
At CoverWallet, you can either consult with an insurance advisor or dive straight into gathering quotes. The platform offers a broad selection of coverage choices, ensuring every aspect of your business is protected, from workers’ compensation and general liability to commercial property insurance.
Once you select your desired insurance coverages, you can efficiently manage your policies via MyCoverWallet. This online dashboard facilitates the easy sending of insurance certificates, filing of claims, and payment of premiums. This tool keeps your insurance policies well-organized and provides constant access to expert advice.
CoverWallet is a valuable educational resource, offering tailored coverage recommendations by industry. You can delve deeper into the specifics, considering factors like your industry type, location, employee count, and annual revenue.
The advantages of using CoverWallet in New Jersey include the ease of obtaining multiple quotes, insights into industry-specific insurance recommendations, and access to a wide array of insurance types.
Progressive is a reputable choice for car insurance, especially suitable for businesses that operate a commercial fleet. It also offers robust coverage options for trucking companies that use tractor-trailers and long-haul semi-trucks.
Businesses that have been operational for at least three years can benefit from a discount of up to 5% on their premiums. Paying your commercial auto policy in full upfront can net you a 15% discount.
Beyond vehicle insurance, Progressive also provides a range of other business insurance products, including cyber insurance, business owner policies, professional liability, workers’ compensation, and general liability insurance. Their “any auto coverage” is beneficial as it ensures any vehicles owned and used for business purposes by you or your employees.
The benefits of Progressive Business Insurance in New Jersey include flexible coverage options tailored to meet specific business requirements and potentially additional benefits like risk management services.
Hartford possesses the expertise required for business insurance. This company excels in tailoring insurance policies to meet its clients’ unique needs, ensuring cost-effectiveness and comprehensive coverage.
It caters to a diverse clientele, including large corporations, mid-sized businesses, and sole proprietors. Their offerings span a wide range of policies such as event insurance, employment practices liability, directors and officers liability, bonding and surety, flood insurance, restaurant insurance, loss of business income, workers’ compensation, and technology errors and omissions.
The advantages of choosing The Hartford in New Jersey include over two centuries of experience in the insurance industry, the ability to obtain quotes online, a strong financial standing, and a broad selection of commercial insurance products.
Types of Business Liability Insurance in New Jersey
New Jersey offers a variety of business liability insurance options. Depending on your business type, you might choose several insurance coverages.
General Liability Insurance
General liability insurance, often termed business liability insurance or commercial general liability insurance, safeguards your enterprise against various claims. These include bodily harm, damage to property (even those rented), reputational damage, and mistakes in advertising, such as copyright infringement. These could impose hefty costs on your New Jersey small business without the appropriate protection.
Professional Liability Insurance
Professional liability insurance safeguards your business against claims resulting from:
- Negligence
- Misrepresentation
- Errors in professional services
- Inaccurate advice
- Libel or slander
If a client believes an error on your part has led to financial loss, they can initiate legal action against your business. Without this coverage, your business must cover all legal expenses and settlements from its own funds.
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) amalgamates commercial property and business liability insurance into a single package. It protects your New Jersey business against various risks, such as fire, theft, bodily injuries, or property damage that may occur during routine operations.
You can customize your BOP to fit the specific needs of your business by adding optional coverages, such as data breach insurance.
Data Breach Insurance
Data breach insurance, a form of cyber insurance, shields your business if personally identifiable information (PII) or personal health information (PHI) is compromised or stolen during a data breach. This insurance helps cover costs related to:
- Notifying impacted customers or clients
- Engaging a public relations firm
- Providing credit monitoring services to affected individuals
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What Is the Cost of Small Business Insurance in New Jersey?
As a small business owner assessing their insurance expenses, you’ll find that commercial insurance in New Jersey can be economical. Here are the average monthly costs:
- General liability insurance: $40
- Workers’ compensation insurance: $44
- Professional liability/errors and omissions insurance: $64
Several factors influence the cost of business insurance, including:
- The nature of your industry and associated risks
- The scope and type of your business operations
- The size of your workforce
- The chosen policy limits and deductibles
Frequently Asked Questions – Small Business Insurance New Jersey
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Bottom Line
Securing the right small business insurance in New Jersey isn’t just a regulatory requirement but a strategic necessity that safeguards the entrepreneur’s hard work and investment. From general liability to property insurance, each policy plays a pivotal role in providing a safety net against the unforeseen challenges that small businesses often face.
With a thorough understanding of state-specific requirements and a tailored insurance plan, New Jersey’s small business owners can navigate risks more confidently and focus on growth and innovation in the competitive market.
