When launching or managing a small business in New Jersey, securing proper insurance is essential. This coverage safeguards your venture against unexpected financial setbacks caused by property damage, lawsuits, employee injuries, and other mishaps, ensuring your business's financial health and operational stability.
Providers like NEXT Insurance excel in offering specialized services tailored to small businesses. They simplify the insurance process with customized policies to address specific business risks.
This guide will help you find the insurance expert that fits your budget and business style, ensuring your enterprise can handle unexpected challenges.
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What Business Insurance Policies Do You Need in New Jersey?
State regulations dictate the business insurance coverage you need. These policies are mandatory throughout New Jersey, from Trenton to Newark.
Workers' Compensation Insurance
Workers' compensation insurance is vital for covering medical treatment, lost wages, rehabilitation, and disability benefits if an employee suffers work-related injuries or illnesses. This policy is mandatory for New Jersey businesses, whether they employ full-time or part-time staff.
Besides helping employees, it protects business owners by covering legal costs if an injured worker or their family sues. For example, if a cleaning company employee becomes ill from exposure to 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 to cover expenses from accidents involving company cars. For instance, if an employee on a delivery run hits a pedestrian, this insurance would cover the pedestrian’s medical costs.
The state mandates both basic and standard policies. The standard option includes at least $30,000 per accident for bodily harm, $15,000 per person, $5,000 per incident for property damage, and $15,000 for personal injury protection. Trucking companies may need additional coverage due to specific regulations.
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, as personal auto policies typically exclude business use.
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Top 7 Companies for Small Business Insurance
NEXT
NEXT offers a wide range 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.
Founded in 2016 and headquartered in Palo Alto, California, NEXT Insurance leverages artificial intelligence and machine learning to streamline the insurance purchasing process. With an A- (Excellent) financial strength rating from AM Best, NEXT is a strong industry contender, though some other companies may offer more specialized coverages like cyber liability insurance.
NEXT, it lets you secure various business insurance coverages online in approximately ten minutes. For those preferring a personal touch, U.S.-based insurance advisors are available for consultation.
Choosing NEXT in New Jersey offers several benefits, including the ability to share a live certificate of insurance, the option to customize your business insurance with various coverages, and a fully online quote and application process with additional support available if needed.
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Hiscox
Hiscox is recommended for freelancers and is 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 provides standalone professional and general liability policies with on-demand coverage for short-term projects, supporting freelancers with manageable monthly payment options.
While Hiscox holds an A (Excellent) rating from AM Best, showing strong financial stability, the company has experienced a higher volume of complaints than typical for its size over the past three years. There has been a noticeable year-over-year decrease in complaints, showing improvements in customer satisfaction. Hiscox’s policies, including BOPs, start at around $500 per year.
In New Jersey, Hiscox offers significant advantages, 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.
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Simply Business Insurance
Simply Business makes it easy to compare quotes and coverage options from leading insurers like Hiscox, helping you find the best fit for your needs. You can secure policy options online in under 10 minutes, streamlining the insurance process.
If you need further assistance or have questions, licensed agents are available via phone. This service benefits businesses and sole proprietors by offering tailored insurance recommendations based on your specific industry, whether landscaping, accounting, or photography.
While Simply Business doesn’t directly handle claims (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.
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Tivly
Tivly offers a convenient online shopping experience for various business insurance policies. By entering your details on their website, you can receive a quote tailored to your business needs. Tivly collaborates with over 200 insurance providers, ensuring you’re matched 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 a straightforward quote process, access to a vast network of over 200 partnered providers, and a personalized matching service to find the ideal insurance solution for your business.
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CoverWallet
Finding business insurance can often be lengthy and cumbersome, requiring the collection and comparison of many quotes and coverage options. However, CoverWallet simplifies this by providing a straightforward platform to obtain quotes from 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 options to ensure 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 easy sending of insurance certificates, filing of claims, and paying premiums. This tool keeps your insurance policies well-organized and provides constant access to expert advice.
CoverWallet is also a valuable educational resource that offers tailored coverage recommendations by industry. You can explore specifics based on your industry type, location, employee count, and annual revenue.
The advantages of using CoverWallet in New Jersey include obtaining multiple quotes, insights into industry-specific insurance recommendations, and access to various insurance types.
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Progressive Business Insurance
Progressive is a reputable choice for car insurance, particularly for businesses operating a commercial fleet. It also offers robust coverage options for trucking companies using 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 provides various other business insurance products, including cyber insurance, business owner policies, professional liability, workers' compensation, and general liability insurance. Their "any auto coverage" ensures that any vehicles owned and used for business by you or your employees are covered.
The benefits of Progressive Business Insurance in New Jersey include flexible coverage options tailored to meet specific business requirements and potential additional perks like risk management services.
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The Hartford Business Insurance
The Hartford brings extensive expertise to business insurance, excelling in tailoring policies to meet clients' unique needs while ensuring cost-effectiveness and comprehensive coverage.
Serving a diverse range of clients from large corporations to mid-sized businesses and sole proprietors, The Hartford offers an array of policies, including 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 industry experience, obtaining quotes online, a strong financial standing, and a wide selection of commercial insurance products.
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Types of Business Liability Insurance in New Jersey
New Jersey provides a variety of business liability insurance options. Depending on your business type, you may opt for multiple insurance coverages to suit your needs.
General Liability Insurance
General liability insurance, often known as business liability insurance or commercial general liability insurance, protects your enterprise against various claims. These include bodily harm, property damage (including rented properties), reputational damage, and advertising errors like copyright infringement. Without this protection, such claims could impose hefty costs on your New Jersey small business.
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) combines 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 your business's specific needs by adding optional coverages, such as data breach insurance.
Data Breach Insurance
Data breach insurance, a form of cyber insurance, protects 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 evaluating 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
What Kind of Business Insurance Is Mandatory in New Jersey?
New Jersey mandates specific types of business insurance. Every company with employees must have workers’ compensation insurance. If employees drive company-owned vehicles, commercial auto insurance is required. For detailed information on New Jersey's business insurance requirements, check the state's official website.
Is Insurance Necessary for an LLC in NJ?
Yes, in New Jersey, all partnerships and LLCs must carry business insurance. The state mandates workers’ compensation insurance for all businesses, including those with part-time or seasonal workers. This insurance helps manage the medical costs of work-related injuries or illnesses and provides disability benefits for injured employees.
What Insurance Should You Have to Operate a Business?
Selecting the right small business insurance is crucial for protecting your hard-earned business. Many business owners start with a Business Owner’s Policy (BOP), which combines business property and general liability insurance.
You can customize a BOP to fit your specific needs and reflect your business's unique aspects. If you have employees, workers’ compensation insurance is mandatory. Always check your state’s regulations to ensure compliance with insurance requirements.
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Bottom Line – Small Business Insurance New Jersey
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 vital role in providing a safety net against 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.
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