Insurance for Small Business Owners in New Jersey

Commercial Auto Insurance.

If your small business owns vehicles, you are required to purchase commercial auto insurance in New Jersey. This requirement includes a minimum of $15,000 per person and $30,000 per accident for bodily injury, and $5,000 for property damage. New Jersey calls this residual bodily injury and property damage coverage. 

Workers’ Compensation Insurance.

New Jersey requires private small businesses to carry workers’ comp coverage if they have any full- or part-time employees. Workers’ compensation typically covers related healthcare and legal expenses that can quickly become costly, providing relief for employees and businesses. For carrying this required coverage, employees agree not to sue your business over the accident or related illness. New Jersey offers a self-insurance program, but you must demonstrate financial ability to pay any claims that may arise. 

Small Business Owner’s Insurance.

A Business Owner’s Policy (or BOP) is a cost-saving package policy that bundles both property insurance and general liability into one convenient, comprehensive policy for small business owners in New Jersey. Typically, a BOP covers customer medical expenses for on-site third-party accidents, advertising damage claims, and losses and damages related to buildings used for business purposes.

General Liability Insurance.

While a BOP combines general liability coverage with property insurance, sometimes it is sought as a separate minimum coverage. If you lease space for your New Jersey small business, your commercial property contract may require general liability Insurance. General liability insurance helps ease the financial strain of customer injury, property damage claims, and slander and libel lawsuits. 

Professional Liability Insurance.

Also referred to as “errors and omissions insurance” or “E&O,” professional liability coverage typically covers work mistakes, missed deadlines, incomplete work, and professional negligence lawsuits. Professional liability insurance is ideal for small businesses in New Jersey that provide expertise, like financial advice, IT consulting, architecture, design, or beauty services, as it can protect them from related damage claims.

Cyber Liability Insurance.

60% of small businesses that suffer a cyber attack go out of business within six months of the attack. Cyber liability coverage can help protect your business from the financial fallout of cybercrimes. It is recommended for New Jersey small businesses to help pay for customer notification and fraud monitoring costs following a cyberattack and associated legal fees. This helps businesses recover from data breaches, ransomware, and other common cyberattacks