To operate a business, you must have commercial auto insurance in New Jersey. You may struggle to choose the best business auto insurance policy for your needs, but an expert insurance agent can guide you through the process so to fully protect your business, you must purchase enough New Jersey commercial auto insurance for your vehicles.
When purchasing commercial auto insurance in New Jersey, consider your risk tolerance, the coverage you require, and the coverage level. Commercial vehicle coverage includes company cars, limos, taxis, cargo vans, buses, SUVs, trucks, and other vehicles owned or leased by your firm.
Many small company owners rely on personal auto insurance for their needs, but this is risky. If you drive your private car for work, there’s a good chance your auto insurance won’t cover any accidents, injuries, or property damage because this exposes you as a business owner to personal and business liability claims.
Using these vehicles for business has many risks and insurance companies base premiums on how often and how far you drive them each year so determining how much coverage to acquire to offset your company’s risks involves the same criteria.
Commercial auto insurance, like personal auto insurance, includes basic coverage options including liability, comprehensive, collision, and more. This policy protects the company from severe losses that could harm its overall financial health and performance.
What Does Commercial car Insurance Cover?
A New Jersey commercial auto insurance policy usually includes both mandatory and optional coverage. Per your requirements, it may incorporate all or part of the following:
- Liability for bodily injury. This sort of insurance protects you from loss if you or an employee are involved in an accident and it also covers medical expenses and any associated expenditures. Your compensation relies on your deductible and the policy’s limits.
- Liability for property damage. Liability coverage for property damage covers the costs of repairing property damaged by you or an employee while operating a commercial vehicle. Assess your risks and potential losses to determine the appropriate policy limits.
- Accident coverage. Collisions in your covered vehicle cover losses regardless of blame.
- Full coverage. This includes all non-collision risks like vandalism to your business vehicle, car theft, or tree damage to your commercial passenger van.
- Substandard or no insurance coverage. This policy pays the difference if your company’s vehicle is involved in an accident with an uninsured or underinsured driver, up to the limits obtained.
- Health insurance coverage. This type of coverage pays for injuries sustained by drivers, passengers, and others in an accident.
Types of Commercial Driver Coverage
Aside from standard coverage options for commercial drivers, you can customize your New Jersey commercial vehicle insurance coverage to meet your specific needs. For example, rental replacement insurance can cover the cost of a rental car while yours is being fixed and you can also add roadside assistance and towing coverage to help cover breakdown costs.
Is personal use of a business vehicle covered?
Many small company owners use their vehicles to run errands or visit clients. Incidents involving business vehicles are usually covered by private auto insurance. However, injuries or damage caused by business vehicles come under the liability of the business owner and the same is for employees who conduct errands for the company. The insurance provider may deny coverage if the employee is conducting business in a personal vehicle.
Commercial Auto Insurance Quotes in NJ
When buying New Jersey commercial auto insurance, work with an agent specializing in writing policies for businesses. Your agent can help you determine your specific risks, the amount of coverage you need to mitigate loss, and the deductibles and limits you want. Some considerations to consider while picking a policy and obtaining a quote are:
- Number of insured vehicles
- How cars are employed
- Whether transporting people or goods
- Annual commercial mileage
- The number of regular drivers
- Driving record
- Drivers’ age and experience
- Credit history
- If you’ve done a driving course
Your agent can examine your needs and give recommendations tailored to your company’s needs.
Stats on New Jersey’s economy & business insurance
A business owner in NJ should be aware of the state’s economic situation. It’s also critical to understand the rules surrounding the commercial insurance you must carry.
In this article, you will learn about the state’s economy and the requirements for commercial insurance and, after knowing this you will be able to make the most suitable decisions in Garden State.
NJ Economic Trends
In terms of economic status, New Jersey is now 46th in the country. Slower economic growth than other states is partly owing to hefty taxes but there are still chances for entrepreneurs.
Several industries are predicted to flourish in NJ in 2021. Among these industries are:
- Education
- Healthcare
- Hospitality
- IT
- Manufacturing
- Services
- Transportation
Commercial Insurance Requirements NJ
Like other states, New Jersey requires business owners to have worker’s compensation insurance and you will need this coverage if you employ any form of staff, full-time or part-time, hourly or salaried. It would help if you also gave disability insurance to your employees in case they become hurt or sick on the job. Additionally, New Jersey business owners must get commercial auto insurance if they utilize a vehicle for business purposes.
Although commercial liability and property insurance are not mandatory in this state, business owners should purchase them and they can help mitigate the costs of property loss or lawsuits resulting from the company.
Click here to learn more about auto insurance in different states.
