Commercial Insurance

Find Insurance for your New Jersey Business

From time to time we get calls from entrepreneurs looking to insure their small businesses in New Jersey, but who are unfamiliar with the state's commercial insurance requirements. Like most other states:

• New Jersey requires anyone who employs even one other person besides the owner, even part-time, to carry workers' compensation insurance. Sole proprietors with no other employees are exempt from this.
• It also requires disability insurance that will provide pay for up to twenty-six weeks should an employee be unable to work as a result of either a work-related injury or an off-the-job illness.
• In addition, any business that operates a vehicle of any kind, be it a truck, taxi, limo, or company car, to purchase a commercial vehicle policy, and if a garage houses any of these, garage liability insurance.

Other than that, New Jersey does not mandate commercial liability insurance. However, since the liability laws currently on the books make our state fertile grounds for lawsuits, we at Shults Insurance Agency Inc. strongly recommend commercial general liability insurance to all our small business clients.

Commercial General Liability Insurance

Also known as business liability insurance, having commercial liability insurance in place protects a company should they be sued for injury or property damages perceived to have been caused by you or your workers. A typical policy generally protects a company from charges of:

• Bodily injury - physical injuries incurred on the business's premises or caused by its employees on the plaintiff's property
• Personal injury - acts that damage a plaintiff's reputation or rights, such as slander, libel, false arrest, eviction, and invasion of privacy
• Property damage - physical damage caused by the company's employees to plaintiff's home or business premises
• Legal defense - costs incurred in defending the company in real or frivolous lawsuits (up to coverage limits)

How much liability insurance a company needs depends on the nature of the business, but for most small businesses, the general rule is between $500,000 and $1,000,000. Those in high-risk sectors such as construction, or companies in constant contact with the public, like restaurants or retail stores, should be looking at higher amounts.

Insurance Premium Costs

How much commercial insurance will cost a business in New Jersey depends on the type of products or services it provides, the number of employees, the length of time it's been in business, and any prior claims. The best way to get an accurate estimate is to call or come in and talk to one of us to Shults Insurance Agency Inc. where our doors are always open. Reach out to our agents for more information.