Get the right commercial insurance for your Newark business
Which policies are recommended for Newark businesses?
Newark, New Jersey, is one of the leading cities for small businesses in the United States. Consider the following policies to protect your Newark business.
General liability insurance
A general liability policy pays for legal costs from customer accidents, along with defamation and copyright infringement claims. Commercial leases in Newark often require this coverage.
- Customer accidents at your business
- Damage to a customer's property
- Slander and other advertising injuries
Professional liability insurance
A professional liability policy covers legal costs related to claims of negligence, such as advice that caused a client to lose money. It's sometimes called errors and omissions insurance (E&O).
- Mistakes that cause financial loss
- Accusations of professional negligence
- Missed deadlines
Cyber insurance
Cyber liability insurance helps small businesses in Newark recover after a data breach or a cyberattack. Every business that handles customer information should have this coverage.
- Data breach notification costs
- Fraud monitoring services
- PR campaigns after a breach
Business owner’s policy
A business owner's policy, or BOP, is an affordable way to buy general liability coverage and commercial property insurance together. It's recommended for low-risk small businesses in Newark.
- Customer slip-and-fall injuries
- Damaged business property
- Theft and vandalism
Workers’ compensation insurance
Workers' comp is required for Newark businesses with any employees, with few exceptions. It also covers work-related injuries for sole proprietors, which health insurance may deny.
- Medical bills from job-related injuries
- Disability benefits
- Legal fees from workplace injuries
Commercial auto insurance
All vehicles owned by Newark businesses must be covered by commercial auto insurance. This policy primarily covers injuries and property damage caused by your vehicle.
- Injuries from an auto accident
- Damage caused by your vehicle
- Lawsuits from an auto accident
Errors and omissions insurance
E&O insurance protects consultants and professional services in Newark against legal defense costs from dissatisfied clients. It's also called professional liability insurance.
- Errors and oversights
- Breach of contract
- Professional negligence
Commercial property insurance
This policy covers physical damage to a Newark business's building and its contents, including any computers and equipment. You can bundle it with general liability in a BOP.
- Burglaries
- Fires
- Storm damage
Commercial umbrella insurance
An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
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Which business insurance policies are required in Newark, NJ?
Workers' compensation insurance
New Jersey businesses with employees, both full-time and part-time, are required to have workers' compensation insurance coverage. There are a few exceptions, including contractors, interns, and volunteers.
Workers' compensation protects small business owners if their employees are injured on the job and incur medical expenses. It can also provide additional support, like partial wages, if they need to take time off to recover.
Commercial auto insurance
All New Jersey businesses with company vehicles must have commercial auto insurance. Commercial auto insurance covers expenses from accidents in company-owned vehicles during work operations, such as deliveries and transportation.
In general, Newark business owners must have the following coverage:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection (PIP)
Small business owners will need a separate policy called hired and non-owned auto insurance (HNOA) for themselves and employees who use their personal vehicles for work purposes.
How much does business insurance in Newark cost?
Small businesses in Newark don't have to pay a lot for commercial insurance. Here are a few average costs for New Jersey businesses, based on policy data from Insureon customers:
General liability: $47 per month
Workers' comp: $47 per month
Professional liability/E&O: $93 per month
The cost of business liability insurance depends on factors such as:
- Type of business
- Business operations
- Number of employees
- Policy limits and deductibles
- Claims history
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FAQs about Newark business insurance
How do I get a certificate of insurance for my business?
Getting a certificate of insurance is easy. With Insureon, you can typically get insurance on the same day with three easy steps:
- Complete and easy online application to find quotes from leading insurance companies.
- Pick the best insurance products for your small business needs and submit your payment.
- Download your certificate of insurance (COI) by logging into your account.
Our licensed insurance agents are here to help you find the best types of insurance for your business and industry. Most small business owners will receive their certificate of insurance within a few hours.
Can my business be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
In New Jersey, small business owners are required to inform customers if their personal information is compromised.
Personal information is defined as a resident's first name or first initial or last name and some other identifying personal detail. These include a Social Security number, driver's license or state ID, credit or debit numbers and PIN codes, emails, or usernames and passwords of online accounts.
Newark businesses are strongly encouraged to consider cyber insurance, as data breach response plans can be exceptionally costly and interrupt business operations.
Does my industry affect Newark insurance requirements?
Certain industries in Newark have specific insurance or bond requirements.
Examples of industry-specific insurance needs include:
- Physicians must have professional liability insurance to practice in New Jersey.
- Contractors are often required to carry a contractor general liability policy and a surety bond in order to secure government and private contracts.
- Trucking companies in Newark with vehicles over 26,000 pounds must carry $1.5 million in liability insurance.
- Notaries and cannabis businesses in New Jersey are not required to carry specific bonds or insurance, but they're highly recommended to protect against common risks.
Check with your licensing body and specific contracts to ensure that you are appropriately covered for your industry.
How can I get help starting a small business in Newark, NJ?
If you'd like help and support with starting or growing a business in Newark, New Jersey, check out these resources:
- Rutgers Newark Small Business Development Center provides services such as start-up planning, business advice, and certifications for prospective business owners.
- New Jersey Small Business Development Centers (NJSBDC) assist small businesses with counseling, events, and special programs. They have centers in Newark, Jersey City, Trenton, and more.
- New Jersey Small Business Association (SBA) connects small business owners in Newark with funding opportunities and federal programs aimed at supporting area businesses.
- The Newark Public Library has small business services for local business owners. These services include business planning and mentorship, as well as training and learning opportunities.
- SCORE Metro NJ is a nonprofit mentorship program that connects small business owners with more established entrepreneurs for guidance and support. They also have workshops and events.
- The Essex County Office of Small Business Development and Affirmative Action (SBDAA) connects Newark small business owners to financing, certifications, and support.
Some business grant and loan programs may require you to obtain small business insurance prior to enrollment.
How can I save money on Newark business insurance?
Small business owners can save money on insurance costs by comparing quotes from different providers. With Insureon, you can get free quotes from top-rated carriers by filling out one easy application.
There are a few other ways to save, such as:
- Bundle your policies for additional savings.
- Make sure that your workplace is safe and compliant to avoid increased premiums from incidents and accidents.
- Ensure fair hiring and employment practices to prevent lawsuits.
Learn more about finding cheap business insurance coverage.