What is General Liability insurance coverage?
General liability insurance can provide important protections for New Jersey small businesses. Sometimes called commercial general liability (CGL), this insurance can help cover costs related to common accidents, such as:
- Slip-and-fall injuries
- Other injuries related to your business, excluding employee injuries
- Damage to someone else’s property
- Accusations of libel, slander or copyright infringement
General liability insurance can help protect businesses from financial losses in a variety of common situations. For example:
- If a customer slips on a freshly mopped floor in a Newark grocery store and injures their shoulder, general liability coverage could help pay for legal fees and damages if the business is found liable.
- If a Jersey City drywall contractor accidentally breaks a client’s window while carrying sheetrock into their home, general liability insurance can help cover the costs to fix the damage.
Your general liability insurance policy can help to protect you from certain related expenses when these types of accidents occur. CGL coverage can also help cover the costs if your business is accused of libel, slander or copyright infringement.
Is General Liability insurance required in New Jersey?
General liability insurance is not mandatory for New Jersey businesses.
However, local governments for cities and counties in New Jersey might require this coverage depending on the type of work you do.
Even though it’s not mandated by law to carry general liability insurance, New Jersey small business owners often get this coverage for its important protections, which include:
Financial protection
New Jersey small businesses may have more financial protection when accidents occur if they have general liability insurance. Banks and lenders may also require this type of New Jersey business insurance.
Work contracts
Potential clients may request proof of coverage before they’ll agree to work with you.
A requirement for a certificate of insurance is sometimes written into contracts. You may lose out on potential jobs without NJ general liability insurance.
Lease agreement
Some commercial property leases require proof of a general liability insurance policy. New Jersey property owners and management companies may refuse to rent you space for your business without this coverage.
Licenses and permits
Depending on what industry you work in, you may need general liability insurance to get a business license or permit in New Jersey.
For example, there are special requirements for general liability insurance for contractors in New Jersey. Contractors must register with the state and provide proof of general liability insurance coverage in a minimum amount of $500,000 per occurrence.
For more details, see our New Jersey general contractor license and insurance requirements guide.
What types of businesses might need General Liability in New Jersey?
Most businesses in New Jersey can benefit from general liability insurance because it covers risks which can happen in nearly every industry.
Businesses with lower levels of risk can still get important protections when they have general liability insurance. Accidental property damage or injuries can happen even at client homes, quiet offices and small retail spaces.
For instance, an employee for a Trenton carpet cleaning business might accidentally scratch a client’s car while removing equipment from their truck. General liability insurance could help cover the costs to repair the damage.
How much does General Liability insurance cost in New Jersey?
Costs for general liability insurance in New Jersey costs vary depending on where your business operates and the type of work you do. The number of employees you have, the policy limits you choose and your past insurance claims can also affect your insurance premiums.
NEXT offers affordable general liability insurance for New Jersey business owners. Our CGL insurance premiums are priced at $45 or less per month for 50% of our U.S. customers.**
Learn more about general liability insurance costs.
How NEXT Insurance helps New Jersey businesses
NEXT provides New Jersey general liability insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
