If you own a business in New Jersey, Selective and your independent agent can help you secure your earnings with a personalized insurance plan. New Jersey’s economy includes small enterprises, middle-market businesses, and large multinationals. These enterprises operate in industries such as technology, manufacturing, construction, and real estate. Any business owner or manager in NJ can get commercial insurance from Selective and our independent agent partners. They can help you tailor the policy to your needs. Get in touch with an insurance agent in New Jersey right away to learn more about your coverage options and obtain a quote.
Small business coverage in New Jersey
Small enterprises account for 99.6% of all firms in the Garden State, ranking eighth in the nation. As a result, New Jersey is the national leader in this category. New Jersey’s 860,000 small enterprises employ 1.8 million people or about half of the state’s private workforce. This number is increasing annually, with small businesses generating over 33,000 new jobs in 2015.
Various financing and incentive programs, such as tax credit programs, growth funds, and lending programs, support the development of small businesses in New Jersey. Nevertheless, New Jersey business proprietors must safeguard their enterprises by obtaining comprehensive small business insurance coverage, as the state has some of the country’s most stringent worker protection laws, including evolving legislation on nondisclosure agreements.
Business insurance in New Jersey
Small businesses in New Jersey pay more than 1.9 million employees. That’s almost half the total number of workers in Garden State.
With NJ business insurance, the owners of these small businesses protect their businesses and workers. This can help them cover unexpected costs when things go wrong.
It can help your business keep going after bad things happen, like
Injuries to people who aren’t workers, such as clients
Someone else’s stuff is damaged.
There are claims of professional carelessness.
Workers getting hurt on the job.
I drive for work and get into car accidents.
What does small business insurance cover?
Small business insurance offers financial protection in a wide range of conditions, including but not limited to:
- Fire, harsh weather, or another tragedy damages or destroys your business property.
- Someone stole your business property, which you still need to recover.
- A third party’s injuries or property damage makes your company liable.
- An employee maintains an injury or falls ill at work, requiring medical attention and missing work.
Methodology
We evaluated six prominent small business insurance providers based on their coverage options, independent evaluations and rankings, and overall ease of use.
- AM Best is a significant global provider of analytics and ratings for the insurance market. Its ratings reflect a company’s financial strength and ability to pay claims.
- JD Power offers insights into consumer interactions with brands across various industries, including insurance. Its 2022 small business insurance customer satisfaction rankings are based on responses from 2,254 small commercial insurance customers on a 1,000-point scale. “Not included” indicates that the company did not appear in JD Power’s 2022 top ten rankings.
- Each company’s website provides the information that determines available coverages.
What are the different types of small business insurance in New Jersey?
Most insurance companies present a wide variety of business insurance options. A basic policy includes general liability, property, and business interruption insurance. Consider adding additional coverages to your insurance based on your New Jersey business’s needs.
Remember that the things we’ve discussed are just examples; different insurance companies may cover other things. Before buying a policy, you should know what your small business insurance should and shouldn’t cover.
- In New Jersey, you need general liability insurance (CGL).General liability insurance, also called (CGL) Commercial General Liability, shields your small business from lawsuits alleging that another person or business has harmed or damaged property. Here are some potential topics for discussion:
- Bodily injury: A customer enters a hair shop and trips and falls, breaking their wrist. The customer sues the hair shop owner for the wages they lost. General liability insurance may cover the following claim and related medical bills.
- Personal injury: During lunch, someone overhears a personal trainer making a false and derogatory comment about one of his clients. When the client finds out about this, they sue for slander. The personal trainer may be able to cover defense costs with their general liability insurance.
- Property damage: A marketing company hires a shooter to make a portfolio of pictures. When the photographer accidentally breaks a bottle of water on the company’s computer when she puts the pictures on it. The machine is unfixable, leading to the loss of essential data. They have general liability insurance that would pay to fix the machine and get the data back.
Commercial Property Insurance:
Insurance of Commercial property is one of the things you need to do to run your business in New Jersey. If you own it, it can protect your inventory, equipment, and even your business address. It’s important to carefully read your insurance to ensure that your business isn’t left out of coverage. Some places that are prone to flooding or hurricane damage might not have full service.
- Business interruption: This helps you regain the money you lost when you shut down your business because of theft, severe weather damage, or something else covered by the insurance.
- In New Jersey, the Business Owners Policy (BOP) – The business owner policy(BOP) combines general liability and property insurance.
Small businesses often use BOP to secure the necessary coverage for their property. Here are some potential topics for discussion:
- Office insurance provides coverage in the event of a fire or business disruption
- Insurance for electronic data loss
- Risk insurance for rented or unowned vehicles
- Commercial crime insurance protects you if your staff members commit fraud.
- Workers’ compensation insurance—New Jersey state law requires most businesses with employees to carry workers’ compensation coverage. This kind of coverage provides protection when employees are hurt on the job and can help cover medical bills and lost wages during their recovery.
Professional Liability Insurance
In New Jersey, Professional Liability Insurance, also known as errors and omissions insurance (E&O insurance), safeguards individuals filing claims against businesses providing professional or personal services. The following are some examples of potential coverage:
- A client who is unhappy: A client hires a marketing expert to make an extensive campaign for them. The client frequently modifies the campaign’s requirements, causing the planner to miss deadlines. The customer files a lawsuit. This could protect the expert, even if they didn’t do anything wrong.
- Carelessness: A business hires a human resources expert to enhance its hiring practices. Another six months passed, and the client called to say that a part-time worker was suing the company because the employee guidebook was missing an essential section about how many hours part-timers could work. The client filed a claim against the expert, saying the mistake was their fault. ‘ Professional liability insurance could cover them, even for the cost of defense.
More Small business liability insurance in NJ
- Employment practices liability insurance (EPLI) protects your business financially if a current or former worker sues you for discrimination, wrongful firing, harassment, or other reasons.
- Cybersecurity insurance helps pay for the costs that come up after a hack. Some of these costs could include recovering and replacing lost or stolen data, informing customers, and hiring a lawyer.
Commercial auto insurance
Do you know that your own car insurance may not cover accidents that happen at work while you or your coworkers are driving? That’s why New Jersey needs small businesses with cars to have professional auto insurance. Commercial auto insurance protects drivers who work for your company, as well as the cars it owns, sells, or rents.
- In New Jersey, commercial auto insurance options may cover both hired and non-owned cars. For employees who occasionally drive for work or rent cars, this additional insurance option can assist in covering damage to a business car resulting from an accident.
- Commercial umbrella insurance is an additional layer of liability protection if a claim is larger than the policy’s normal liability limits.
- Directors and officers (D&O) liability insurance – If customers, suppliers, investors, rivals, clients, or others sue them, directors and officers (D&O) liability insurance protects their assets.
- Product liability insurance will cover the costs if your business’s product harms a customer or a third party.
- Key person insurance: A business owner, founder, or other “key person” who plays a crucial role in the company’s operations can purchase life insurance. If that critical person dies, the business will get money from the will.
- Inland marine insurance – Inland marine insurance will cover damage or theft if you move business property by truck, train, or other land-based means.
It’s good to start a small business in New Jersey. In NJ, Infhow offers small business insurance that is tailored to the needs of your business.
Personalized protection for your New Jersey business
Suppose you own a small business in New Jersey; consider getting business insurance to protect your property, workers, and daily operations from several risks. If you run a business in New Jersey without insurance, you might have to pay for a claim on your own, which could be expensive.
As of 2018, the U.S. Small Business Administration said that New Jersey has over 952,000 small businesses that hire nearly 49% of the state’s workers. There must be a workers’ compensation program for all 1.9 million employees because the law says so.
Through the Progressive Advantage Business Program, you can make your quote for general liability, workers’ compensation, and other types of insurance. The licensed professionals we work with can assist you in creating a policy that suits your needs and budget.
Evaluate different insurance companies for small businesses in NJ
There are many insurance companies for small businesses. These are some of the companies and how they compare.
|
Company |
AM Best Rating |
JD Power Ranking |
Available Coverages |
|
A- |
Not included |
General Liability, Workers’ Compensation, BOP, Commercial Auto, Commercial Property, Professional Liability, Business Property, Product Liability |
|
|
A+ |
4th (852 points) |
Business Owner’s Policy (BOP), Property, Liability, Business Interruption, Equipment Breakdown, Commercial Auto |
|
|
A++ |
2nd (855 points) |
Workers’ Compensation, BOP, Cyber Insurance, Management & Professional Liability, General Liability, Business Umbrella, International Advantage |
|
|
A+ |
Not included |
Workers’ Compensation, Commercial Auto, Commercial Package Policy, BOP, Commercial Excess and Umbrella, General Liability, Employment Practices Liability Insurance (EPLI), Cyber Insurance |
|
|
A+ |
Not included |
BOP, Professional Liability, General Liability, Workers’ Compensation, Cyber Insurance, Commercial Auto, Contractors Liability |
|
|
A++ |
1st (856 points) |
BOP, Commercial Auto, Liability, Workers’ Compensation, Inland Marine, Errors and Omissions (E&O), EPLI, Small Business Life (Key Person) |
The best small business insurance companies in New Jersey
Next Insurance
Founded in Palo Alto, California, in 2016, Next Insurance is a relative newcomer to the small business insurance market. But the company has received significant financial backing from Munich Re, one of the world’s largest multinational insurance companies.
As it’s among a growing number of companies focused on insuretech, you might expect Next Insurance to offer an easy-to-use web experience. You probably won’t be disappointed. You can get online quotes for general liability, workers’ compensation, BOP, commercial auto, and more.
Next Insurance was not included in JD Power’s 2022 Small Business Insurance Satisfaction Rankings. However, the company has an A- rating from AM Best.
The best small business insurance companies in NJ
Next Insurance
Next Insurance is a new company in the small business insurance market. The company launched its operations in Palo Alto, California, in 2016. However, Munich Re, one of the world’s largest global insurance companies, has given the company a lot of money.
Next Insurance is one of many companies specializing in tech insurance, so you can expect its website to be easy to use. You’re likely to be satisfied. Getting quotes online for things like general liability, workers’ compensation, BOP, commercial cars, and more is possible.
JD Power’s 2022 Small Business Insurance Satisfaction Rankings did not include this type of insurance. However, AM Best gives the company an A- grade.
Allstate
Allstate provides insurance for small businesses. It encompasses BOP, property, business liability, interruption, equipment breakdown, and commercial auto.
Overall, Allstate’s simplicity of use falls below those of the other firms in our evaluation. You can get a commercial auto insurance quotation online. However, it’s unclear how easy it is to get a quote online for other business insurance products—an agent must complete quotations for some business types. According to their website, you can only file a claim using an 800 number.
Chubb
Chubb is one of the greatest insurance companies in the United States. Its business insurance products include workers’ compensation, BOP, cyber insurance, professional liability, general liability, and a business umbrella.
The Chubb website contains a wealth of information to help small business owners understand their insurance needs, including articles and tools like cost estimators. You can acquire a quote online or through an agent and even report a claim online.
NJM
NJM, headquartered in New Jersey, provides business insurance to customers in numerous mid-Atlantic states. The company provides workers’ compensation, commercial auto, commercial excess and umbrella, EPLI, cyber insurance, BOP, and a commercial package policy.
The commercial package policy covers property, liability, business revenue, inland marine, and crime. Similar to BOP, it caters to enterprises seeking more comprehensive coverage. NJM’s small business insurance products allow you to obtain a quotation online or through an agent & file a claim online or over the phone.
The company receives an A+ rating from AM Best. It did not appear in JD Power’s 2022 Small Business Insurance Satisfaction Rankings.
Progressive
Progressive presents a wide range of business insurance options, but its most well-known product is likely its mascot, featured in numerous advertisements. BOP, professional liability, general liability, workers’ compensation, cyber insurance, business auto, and contractor liability are some of the things it offers. Many claim that this company is the best commercial car insurer in the United States, with more than 1.9 million vehicles insured.
AM Best gives Progressive an A+ grade. The J.D. Power 2022 Small Business Insurance Satisfaction Rankings did not rank that company.
State Farm
You can stop at State Farm if you only look at company rankings and reviews. It got an A++ from AM Best, which is the best rating the company can give. The JD Power 2022 Small Business Insurance Satisfaction Rankings ranked it number one.
State Farm provides many kinds of insurance, such as BOP, commercial auto, liability, workers’ compensation, inland marine, E&O, EPLI, critical person coverage, and more. The “Small Biz Quiz” on the business website can help you determine what coverage you need. You can also use State Farm for your retirement plan.
New Jersey’s business insurance requirements
New Jersey law only requires businesses to have workers’ compensation insurance. Any company with one or more workers can get insurance from a private company or meet the requirements to become self-insured.
Laws don’t require other types of business insurance, like breach of contract (BOP) or general liability, but you’ll likely need them before signing a lease or contract with a potential client. Their contracts usually spell out the types of security and limitations you have to have before you start working with them.
New Jersey’s business insurance requirements
New Jersey law only requires businesses to have workers’ compensation insurance. Any company with one or more workers can get insurance from a private company or meet the requirements to become self-insured.
Laws don’t require other types of business insurance, like breach of contract (BOP) or general liability, but you’ll likely need them before signing a lease or contract with a potential client. Their contracts usually spell out the types of security and limitations you have to have before you start working with them.
Business insurance for all of New Jersey’s cities
We can provide customized business insurance in all New Jersey cities, including, but not limited to:
- Clifton
- Camden
- Elizabeth
- Edison
- Jersey City
- Newark
- Passaic
- Paterson
- Toms River
- Trenton
otherwise retaliated against for making a claim of discrimination.
Important New Jersey laws and factors are pushing up business liability rates
The federal government ensures essential protection against harassment for workers in all 50 states. A company with 15 or more workers can’t treat employees differently because of race, color, national origin, sex, religion, or disability. A company with 20 or more employees must promise not to discriminate based on age, and a company with four or more employees must promise not to discriminate based on legal status.
These are not nearly as strong as New Jersey’s anti-discrimination rules. There is no way for employers with only one worker to treat employees differently because of their race, color, ancestry, nationality, sex, religion, age, disability, genetic information, sexual orientation, marital status, HIV/AIDS status, gender identity or expression, atypical cellular or blood traits, or military service. If an employee files a discrimination and retaliation lawsuit if they allege they suffered retaliation or termination for reporting discrimination.
New Jersey changed its Law Against Discrimination in March 2019 to ban nondisclosure agreements (NDAs) in job and settlement agreements. These agreements try to keep the details of discrimination, retaliation, and harassment claims secret, which makes these cases even more difficult.
How much does NJ insurance for small businesses cost?
Small companies can get commercial insurance at a price they can afford. These are the average costs for business owners in New Jersey:
- $40 a month for general risk
- Workers’ pay is $44 per month
- E&O and professional liability: $64 a month
Several factors influence the cost of business insurance:
- Your business and risks
- Running a business
- The number of workers
- Your policy’s limitations and fees
There are affordable insurance choices for businesses in New Jersey! Insurance for general liability can start as low as $29 a month for a small business in New Jersey. This can cover up to $1 million in damages. You’ll probably pay a little more for insurance, though. Why? These factors impact the cost of premiums.
- What kind of business do you have
- The place where your business is
- It takes into account how long you’ve been in business
- It is examined whether or not you have a lengthy history of claims
- Your premiums can go up or down depending on the deductibles and insurance limits you pick
- Workers’ compensation costs depend on staff size and job duties
When figuring out what kind of insurance a small business needs, these are some of the things an insurance agent will look at. Prepare to answer more questions in order to get the best price on the coverage you need.
Small Businesses Commonly Insured in New Jersey
Some professions that are generally certified in New Jersey include:
- Accountants
- Contractors
- Consultants
- Cleaning services
- Cleaning services
- Dry cleaners
- Food trucks
- Lawn care businesses
- Manufacturers
- Personal trainers
- Real estate agents
- Restaurants
Reviewed By: Sarah Reid, Licensed Agent
Resources for New Jersey’s Small Business Owners:
- Business Insurance Requirements (NJ Department of Labor and Workforce Development)
- Workers’ Compensation Guide (New Jersey Department of Labor and Workforce Development)
- 2024 New Jersey Small Business Profile (US Small Business Administration).
- 2021 New Jersey Workplace Injury Data (US Bureau of Labor Statistics)