Frequently Asked Questions About
Commercial General Liability Insurance
How much does small business insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number. (read more)
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it. (read more)
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Hotel Motel Insurance New Jersey
Hotel Motel Insurance New Jersey. Hotels provide lodging to the general public. Rooms may be rented on a short-term or long-term basis. The hotel may offer a bar or lounge (sometimes with live entertainment), beauty or barber shops, child or pet care, full-service restaurant, gift shops, laundry, and dry-cleaning, limousine services, spas, or various recreational attractions. Many hotels also offer meeting facilities for seminars and conferences.
Motels tend to be less than four stories high with doors opening to the outside rather than the inside of the buildings.
The hospitality industry is not immune from litigation, and hotels and motels are at risk to facing claims for liability that often lead to bankruptcy or at least financial distress for the hotel owner or company. For instance, when a hotel manager went into labor while on duty in New Jersey City in 2011, giving birth to her child in one of the hotel's guest rooms, she filed a $10 million lawsuit against the hotel.
In her claim, the manager said that her supervisors rushed her out of the establishment following the birth, did not grant her maternity leave, and terminated her employment a short time afterwards. Scenarios such as this one are not uncommon.
Hotel motel insurance New Jersey protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and protect your property now.
Hotels, motels, and other businesses in the hospitality industry face various risks that can lead to financial trouble. Even something as innocuous as an unauthorized guest in a hotel room can lead to litigation if the guest becomes injured while on the premises.
NJ hotel owners must be prepared for any potential situation that arises, since they can be held liable for anything that happens on their properties. The hospitality industry is faced with many high-profile claims, so it makes sense to protect your individual business with a comprehensive hotel motel insurance New Jersey policy to cover your financial obligation if a suit is decided against you.
Insurance for Hotel and Motel Owners - What's Covered?
Although your specific hotel motel insurance New Jersey insurance needs are based on your particular circumstances, there are some types of universal hotel motel insurance New Jersey coverage that all hotel/motel owners and businesses need. Some of these include:
- General liability insurance. This type of insurance protects your business from loss due to bodily injury or property damage from guests who stay on your property.
- Commercial auto liability coverage. If your hotel offers shuttle serve or limo service and owns the vehicles used for the service, then you need NJ commercial auto insurance to cover any potential liability caused during the use of the vehicle. NJ state miniums are $15,000 / $30,000 for liability. Compare that to your risk tolerance to make sure you buy enough coverage to protect your business' finances in the event of a claim.
- Worker's compensation insurance. Protect your employees with worker's compensation insurance. Worker's comp provides monetary compensation and medical payments for workers who are injured or become ill due to a work-related issue. NJ requires that employers provide this insurance for all non owners.
- Liquor liability coverage. Many hotels serve alcoholic beverage or operate bars on their premises. Liquor liability coverage protects you from losses due to the actions of intoxicated guests who cause bodily injury to themselves or others or who cause property damage.
- Foodborne illness coverage. If you offer room service or have a restaurant on site, then foodborne illness can become an issue. Foodborne illness policies or riders to your business insurance policy can pay for claims stemming from serving food contaminated with salmonella or E.coli, among others.
- Cyber liability coverage. Data management or computer breaches are covered by cyber liability insurance. This protects your hotel business from claims arising from illegal access to your guests' names, credit card data, and other information.
- Premises pollution coverage. When pollutants such as mold spores cause injury to employees or guests, this coverage pays for punitive damages, cleanup costs, and medical costs for those affected.
- Employment practices coverage. If an angry former worker or current employee sues you for an alleged employment infraction, then this insurance helps pay associated costs.
Protecting Your Assets With NJ Hotel Motel Insurance
Protecting your hotel's assets protects the investment you have made in the property. Some coverage types to consider include:
- General property insurance. Protect your hotel's decor, carpeting, furnishings, electronics, and other assets with general property insurance. This hotel motel insurance New Jersey coverage provides compensation for property that is lost, stolen, vandalized, or otherwise destroyed.
- Equipment breakdown insurance. If your equipment fails, your business may come to a standstill without equipment breakdown insurance. This is true of everything from computer equipment needed for guest reservations to equipment in the kitchen or HVAC system throughout your business. This insurance kicks in and ensures that you have the funds needed to make needed repairs or replace equipment.
- Business interruption insurance. If a covered peril forces the closure of your business on a temporary basis, this coverage ensures that you have adequate income for paying salaries and expenses.
- Utility interruption insurance. If a serious utility outage causes your business to lose money, then this hotel motel insurance New Jersey provides loss compensation.
- Hotel guest relocation rider. If a utility outage or other covered peril necessitates relocating guests, this type of insurance can provide compensation for the losses sustained as a result.
These are some basic coverage types for hotels; the list of potential policy addendums and add-ons is lengthy. Your particular hotel motel insurance New Jersey policy should be tailored to your needs, risk tolerance, and assets that you need to protect. Work with an agent to determine what your specific risks are and how you can protect yourself from potential loss.
New Jersey Motel's And Hotel's Risks & Exposures
Premises liability exposure is high due to the number of guests and visitors. The motel should meet all life safety codes to assure guest safety. To prevent trips, slips, and falls, the motel must be well maintained with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Balconies should be regularly inspected and maintained.
Swimming pools, exercise facilities, and playgrounds should be limited to guest use only, and be properly maintained. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. Access to rooms should be through an electronic keying system that changes codes for each guest to prevent unauthorized access. Employees who have access to universal access codes and cards should be monitored for the protection of the guests. Personal injury losses may occur due to alleged wrongful eviction, invasion of privacy, or discrimination.
Products liability exposures can be high if the motel has a restaurant or lounge. Employees should be trained in the proper handling of consumables to prevent foreign objects in food, food poisoning, or the spread of other transmissible diseases. Other product liability exposures can arise from vending machines and gift shops.
Workers compensation exposure is moderate. Cleaning and maintenance operations can result in lung, eye or skin irritations and reactions. Slips and falls, back injury, hernias, sprains and strains from lifting or working at awkward positions are common. The parking lot and sidewalk snow removal may be handled by employees or outside contractors. If employees are responsible, there are potentials for strain and fall injuries. Food preparation operations can result in cuts, scrapes, and burns. Interaction with guests can be difficult. Employees should be trained in dealing with rowdy guests. Animals owned by guests can bite, scratch, or kick workers.
Property exposures are due to the high combustibility of contents and the multiple sources of ignition. Electrical wiring, plumbing, cooling, heating, and laundering systems must be adequate and meet current code. Hard-wired smoke detectors should be installed in all guest rooms and common areas. Cooking equipment must meet all NFPA requirements.
Flammables should be stored properly. If there is a pool, chemicals used to treat it should be stored separately. Business Interruption exposure can be substantial due to lack of backup facilities and the seasonality of some motel operations.
Equipment breakdown exposures include breakdown losses to the heating and air conditioning systems, cooking equipment, laundry equipment, hot water systems, electrical control panels, and other apparatus. Breakdown and loss of use could result in a significant loss, both direct and under time element, if replacement parts are unavailable or repair time is lengthy.
Crime exposure includes employee dishonesty and money and securities. References and background checks should be conducted on all employees. Cashiers' drawers should be kept stripped with regular deposits made throughout the day. A minimal amount of cash should be kept overnight. Monetary transactions must be monitored and audited on a regular basis to prevent employee theft.
Money-handling responsibilities should be separated, with no employee handling both receivables and disbursements. Guest property coverage is important to protect guests' property from theft by employees, other guests, or trespassers. Coverage is provided for each room and for items in lock deposit box. Controls should be in place to verify guest identity before permitting access to lock boxes.
Inland marine exposure comes from accounts receivable if the motel bills for services, computers, and valuable papers and records for contracts, guests' and suppliers' information. Duplicates must be made and stored off site for easy restoration. There may be commercial articles floater for cameras, audiovisual equipment, and musical instruments, contractors' equipment for exterior maintenance, or a special floater for items used off site.
Business auto exposure is generally limited to hired and non-owned liability for employees running errands. If there are owned vehicles, such as those used for servicing the property, any driver should have an appropriate driver's license and an acceptable MVR.
Vehicles must be maintained and records kept in a central location. Some motels may contract with a service to transport clients to and from their premises. If so, it is important to determine the contractual relationship between the motel and the transportation service.
New Jersey Economic Data & Business Insurance Requirements
If you are considering opening a business in NJ, it is important to be aware of the economic status of that location. It is also important that you are aware of the regulations related to the commercial insurance that you are required to carry.
If you are thinking about starting a business in the State of New Jersey, keep on reading to find out some key information about the economic status of the state, as well as the rules for commercial insurance. With this information, you will be able to put your best foot forward so that you can make the best choices in the Garden State.
Economic Trends In New Jersey
Currently, New Jersey is ranked 46th in the country in terms of its economic position as compared to other state. While the economic growth may be slower in this state than in other locations, this is largely due to the high taxes. Nevertheless, there are still opportunities for entrepreneurs.
There are several industries that are expected to see growth in NJ in the 2019 calendar year. Some of these industries include:
- Information Technology
- Service Industries
New Jersey Commercial Insurance Requirements
The New Jersey Department of Banking and Insurance regulates the insurance industry In NJ. Just like most states in the country, New Jersey business owners are legally required to carry workers comp insurance. If you employ any type of staff, whether it's full-time or part-time, or hourly or salaries, you must carry this type of coverage. You must also provide your employees with disability coverage in the event that they are injured or become ill on the job. Additionally, New Jersey business owners are legally required to carry commercial auto insurance if they use a vehicle to conduct any type of business.
Commercial liability insurance and commercial property insurance are not required in this state; however, it is still a wise idea for business owners to invest in these types of policies. They can offset the costs that are associated with property loss or with any lawsuits that may arise as a result of doing business.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Appliance & Electronics Store
- Art Gallery
- Auto Service Repair
- Auto Supply Parts Store
- Bicycle Shop
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Car Wash
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Funeral Home
- Furniture Store
- Gas Station
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Lingerie Store
- Luggage Store
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tobacco Store
- Toy Store
- Travel Agency
- Wig Store
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
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