Generally speaking, New Jersey is a great place to own a small business. There are numerous financing programs, tax breaks, and incentive programs to help small business owners. On the other hand, anti-discrimination laws and workers compensation laws are some of the strictest in the nation. Where can small business owners get the general liability insurance they need?
- Top 6 Providers of General Liability Insurance in New Jersey
- What is General Liability Insurance? What Does It Cover?
- What doesn’t General Liability Insurance Cover?
- Why Small Businesses Should Get General Liability Insurance in New Jersey
- How Much does General Liability Insurance Cost in New Jersey?
- What Affects How Much You’ll Pay for General Liability Insurance in New Jersey?
Top 7 Providers of General Liability Insurance in New Jersey
- CoverWallet: Best for Comparing Online Quotes
- Hiscox: Well-known insurance companies for small businesses with flexible payment options
- Vouch: Best general liability insurance for Startups in New Jersey
- Next Insurance: Best for bundle discounts
- The Hartford: Established and reputable carrier with stellar reviews
- Biberk: Save you 20% over other insurance companies
- Nationwide: Best customer satisfaction rating in the reputable J.D Power study
CoverWallet: Best for Comparing Online Quotes
CoverWallet is a digital business insurance broker. They work with several leading business insurance companies such as Hiscox, Liberty Mutual, Chubb, etc. and are able to provide quotes of these companies once you fill in the lead form on their website. Within a few minutes, you will be able to compare several quotes in one place conveniently.
If you buy a policy through them, you will be able to use their digital dashboard to manage all of your business insurance policies in one place conveniently from getting your insurance certificate, renewing, to filing a claim.
Hiscox: Well-known insurance companies for small businesses with flexible payment options
Hiscox offers tailored insurance options, so you won’t have to pay for insurance you don’t need. They have flexible payment options, so you can pay monthly with no added fees. It’s easy to get a quote from Hiscox, or you can call and speak to an agent. For this quote, we said we were a home-based photography business with no employees and $97,000 in revenue.
Vouch: Best general liability insurance for Startups in New Jersey
If your business is a startup, Vouch might be perfect for you. Coverage can begin the next day, and if you have questions, you can zoom, email, call or talk to a licensed insurance advisor via chatbot. They seemed to be aimed at small businesses with a good amount of revenue and raised capital. That may be why we couldn’t get a quote. Here’s a screen shot of the type of packages they offer:
Next Insurance: Best for bundle discounts
If you need more than one policy, you can save 10% with Next. That could be helpful in New Jersey, which requires workers compensation if you have one employee, or if you use a car for your business. Online quotes are easy to get, and coverage can start right away. You can get insurance entirely online, or if you have questions, you can call and speak to an agent. They have thousands of professions you can choose from in the drop down menu, making the whole process easy and painless.
The Hartford: Established and reputable carrier with stellar reviews
The Hartford boasts a 4.8 out of five stars, based on over 17,000 reviews for business insurance. They insure over a million small businesses, and as soon as you choose your business type in the drop down menu, they can recommend all the insurance you’ll need. You can pick and choose which policies you’d like. You can get a discount if you bundle policies. You can get an online quote as well.
Biberk: Save you 20% over other insurance companies
As part of Berkshire Hathaway, you can’t get better financial strength than Biberk. To get a quote, you’ll answer some questions and then someone will email you with an estimate. Biberk has sold over 50,000 business insurance policies and has good customer reviews. They claim you can save 20% over other insurance companies. They also have other small business policies in case you need them.
Nationwide: Best customer satisfaction rating in the reputable J.D Power study
Nationwide occupies the top spot in J.D. Power’s small commercial insurance study for both 2018 and 2019 (2020 data isn’t out yet). This means they score highly on things like products offered, claims processing, price and customer service. They insure over half a million small businesses. The only thing is that you’ll have to talk to an agent to get a policy, but after than you can file claims and pay online.
What is General Liability Insurance? What Does It Cover?
General liability insurance covers bodily injuries to third parties and property damage. Bodily injury occurs when someone comes into your shop, trips over something and breaks an ankle. General liability insurance would cover those costs for you.
Property damage is physical damage caused by you or your employees to someone else’s property. This is why is you rent space, the landlord will often require you to have general liability insurance.
General liability insurance also covers:
- Personal injury, which includes things like copyright infringement, slander, and damage to your reputation
- Advertising injury (losses caused by advertising)
- Legal defense
- Medical payments
Keep in mind you don’t actually have to have been in the wrong for someone to sue you.
What doesn’t General Liability Insurance Cover?
Although general liability insurance covers quite a bit, it doesn’t cover everything. Some things it does not cover include:
- Employee injuries
- Damages to your own property
- Cyber incidents
- Discrimination lawsuits
- Illegal or malicious acts
Employee injuries should be covered by workers compensation insurance, which you’ll need in New Jersey if you have even one employee. Damages to your own property is covered by commercial property insurance, and you can also get cyber security insurance. Anything you do that’s illegal or malicious is not covered by any type of insurance.
Why Small Businesses Should Get General Liability Insurance in New Jersey
You probably already know that New Jersey has a reputation for lawsuits. New Jersey is one of the most densely populated states, which means your small business will have plenty of competition, not only in New Jersey, but from close by New York City. Profit margins can be very thin, so make sure a lawsuit doesn’t bankrupt your business.
On the positive side, local communities can be very supportive of small businesses in New Jersey, and there are a number of resources available for small businesses, such as:
- New Jersey SCORE
- New Jersey Business Action Center
- New Jersey Small Business Development Centers
How Much does General Liability Insurance Cost in New Jersey?
It largely depends on what sort of business you’re in. A typical small business in New Jersey pays anywhere from $300 to $5,000 a year for liability insurance.
Prices vary by providers, so make sure you shop around with a few companies or work with a digital broker like CoverWallet to compare quotes from several companies to select the best and cheapest one for you.
What Affects How Much You’ll Pay for General Liability Insurance in New Jersey?
These things affect your rates:
- Nature of your business
- Level of risk
- Claims history
- Years in business
- Home-based or physical location
When we say “level of risk” that refers to the likelihood of someone injuring themselves or damaging property. This is why brick-and-mortar stores carry more risk than someone who prepares taxes in their basement and does all their work online.
If you can only afford one type of insurance, make it a general liability policy.