New Jersey Certificate of Insurance (Quotes, Cost & Coverage)
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Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial 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.
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.
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.
New Jersey Certificate of Insurance
New Jersey Certificate of Insurance (COI). There are inherent risks involved anytime a contractor works on a client's property. Life is full of risks, and contract work is particularly risky. Contractors may become injured on the job or damage property belonging to the client. When individuals and companies hire contractors to work for them, they want to be assured that any injuries or damage does not end up costing them.
They also want to be assured that they don't have to pay for substandard work. A New Jersey certificate of insurance gives clients this assurance.
A New Jersey certificate insurance provides verification of your business insurance coverage. Get a fast quote and your COI now.
An New Jersey certificate of insurance is a document that's standard in the contracting business. It provides evidence that the contractor has insurance coverage and includes the type of coverage and the limits of the policy. It also lists the dates that the policy is in effect.
Around one out of every 25 claims resulting from errors and omissions involve a certificate of insurance. Around 36 percent of these cases involve contractors who failed to properly identify or add all parties who needed to be insured prior to commencing work. About 21 percent of the cases involve situation where the certificate's holder misrepresented the business' coverage or even claimed to have coverage that is nonexistent.
Why Do Clients Want To See Your Certificate?
The New Jersey certificate of insurance is important because your company can be held liable if you work with a subcontractor who causes property damage or other damage when working on behalf of your company. Even when you have a contract with the subcontractor spelling out the terms of the contractor, and that contract states that coverage is mandatory, if the coverage actually doesn't exist, then it does your business no good; you're still liable for damage. Proof of coverage from subcontractors is therefore vital.
Who Should Ask to See the NJ Certificate of Insurance?
As a business owner, you should seek a New Jersey certificate of insurance from every subcontractor that you hire. Even among subcontractors that you know and trust, it remains vital that you get this proof of insurance prior to allowing the contractor to conduct business and provide services on your behalf. Each time you hire a subcontractor, even one you've worked with in the past, you should obtain a new NJ certificate of insurance. This can prevent a situation where you absorb risk unwittingly when subcontractors do not have their own insurance in force.
Property owners should also ask for this certificate prior to allowing contractors to work on their properties when hiring contractors, landscapers and others. The reason for this is that:
- It prevents you from taking on risks involved in hiring a company only to find out that the company or its subcontractors have improper insurance or none at all. This protects you from scenarios such as claims that arise if a neighbor's lawn, shrubs, or trees become damaged.
- It ensures that you are not the responsible party if a contractor is injured while working on property you own.
- It provides coverage if the contractor's work is shoddy or incomplete.
What to Look for When Examining a NJ Certificate of Insurance
The first thing to remember when looking at a New Jersey certificate of insurance is to remember that it is that the certificate may not be valid. Forged or false certificates are not unheard of, and the contractor may have allowed the insurance to lapse after purchasing a policy. Best practice dictates requesting the New Jersey certificate of insurance from the contractor's insurance company in lieu of taking the contractor at his word and assuming the validity of the certificate.
When reviewing a New Jersey certificate of insurance, look at:
- The name on the certificate. It should match the name of the person or the company that you ire.
- The coverage dates. Make sure the policy is not set to expire prior to the anticipated completion date for the job. If the certificate expires during a job, request a new one.
- The limits on the policy and coverage type. The certificate should provide proof of general liability that protects against damage and worker's comp insurance that pays out if the person is injured while working. The limits of the policy should be sufficient to protect you from personal liability in the event of a major event.
In addition, you should ask to be named as an additional insured during the span of the project. By having another entity add your business as an additional insured that sub contractor is protecting you against their potential negligence.
Tracking a Certificate of Insurance
An insurance tracking firm can help you verify coverage throughout the job. These companies also provide notification of expiring certificates so that you don't have to keep track of the insurance and ensure it's in force. An insurance agent is also a good liaison in determining the validity of insurance and reviewing the New Jersey certificate of insurance to ensure that it protects you from personal liability when working with contractors and subcontractors.
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 Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Comprehensive General Liability
- Directors and Officers Liability
- Employers Liability
- Employment Practices Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Small Business
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners thnk about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc.? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.