subject: 4 Things You Should Know About New Jersey Commercial Insurance [print this page] Commercial insurance provides business protection and typically falls under three categories: worker's compensation, liability and property insurance. Commercial automobile insurance protects a company's vehicles from loss, theft, damage and other liabilities. The insurance covers the business in the event a vehicle is damaged or if a driver injures another driver, pedestrian or property. Commercial auto insurance New Jersey is regulated by the Department of Banking and Insurance. The department offers a commercial insurance plan for high-risk businesses and regulates New Jersey statutes regarding insurance.
New Jersey requires that automobile insurance policies meet minimum coverage requirements. The minimum requirements insure that persons injured in accidents receive some level of coverage for injuries or compensation for damages. Automobile policies must cover several areas, such as bodily injury, property damage, personal injury, collision and under-insured/uninsured motorist and should meet a minimum dollar amount for each area. Meeting the basic requirements may not provide the best coverage and could leave a business vulnerable to higher out-of-pocket expenses. For example, a limousine company that has a fleet of expensive vehicles should consider a higher-coverage plan.
All business vehicles principally garaged in the state of New Jersey are required to carry commercial insurance. This means that a vehicle registered in the state of New York, but principally housed in New Jersey is required to carry New Jersey insurance. The state requires that a company must be certified or approved by the New Jersey Auto Insurance Plan to execute insurance policies.
Obtaining commercial auto insurance New Jersey can be difficult, especially if the business is new or otherwise prone to frequent insurance claims. As a result, the New Jersey Commercial Automobile Insurance Plan (CAIP) was established in 1984 for high-risk businesses. The program provides commercial coverage for businesses that have difficulty securing insurance through the voluntary market. The process requires an application, at which time the business submits a number of forms and the required fees. CAIP requires an annual recertification to continue coverage and participants can request coverage changes.
New Jersey requires that many vehicles undergo an insurance inspection prior to receiving collision or comprehensive insurance coverage. The rule was created to prevent insurance fraud by recording existing damages to newly insured vehicles. The insurance inspection is in addition to inspections required by the motor vehicle department's mandatory inspections. Once the inspection is complete, consumers must notify the insurer to begin receiving the benefits of collision or comprehensive coverage.
Commercial automobile insurance can protect a company's assets from damage and provide resources to those affected by a negligent driver. New Jersey commercial automobile insurance requires that businesses meet several guidelines to be in compliance. Fortunately, the state offers a program for high-risk businesses, which offers the same level of coverage available in the voluntary market.
by: Brenda Fullwerth
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