Commercial insurance policies protect businesses and organizations from potential risks that threaten the well-being of a company. In New Jersey, the state requires business owners to carry two types of commercial insurance — business auto and worker's compensation.
New Jersey law requires all sole proprietorships, partnerships/LLCs, and corporations to carry worker's compensation insurance. Since businesses are liable for any medical expenses from work-related injuries to employees, companies must protect themselves from potential civil or criminal penalties when incidents occur.
State law also requires companies and organizations to carry commercial liability auto insurance with coverage limits for property damage and bodily injury. The policy limits depend on the type of vehicle being covered, so businesses need to tailor their policies based on the cars used to carry out day-to-day operations.
Some of the most common businesses in the state that need commercial auto insurance include:
If a company fails to obtain the necessary insurance, they are subject to penalties that include liens against assets, fines, and awards for medical expenses and civil lawsuits.
Employees who drive as part of their job must provide proof of minimum auto liability insurance. If a driver fails to provide evidence, the employee and the company face suspension of driving privileges and potentially hefty fines. Drivers must also keep a paper or electronic proof of insurance form with them at all times while driving or provide the proof in situations including:
Suppose you want to learn more about commercial insurance. In that case, the laws in place for New Jersey business owners and how commercial insurance can protect you and your company, talk to us today at Insurance Associates Plus for your no-obligation quote.
