New Jersey Retail Store Insurance (NJ) – policies and cost

Retail store Liability Insurance in New Jersey  – (NJ), is a must have type of insurance to have for any person who conducts business selling to the public from local shops.

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If you’re a retailer, you should buy retail store liability insurance, and here’s why! 

What actions do retail stores do in New Jersey? 

But first, a retail store should not to be confused with a shop. There are many studios that include the word shop in their name, like auto body shop that are not selling products, but provide repairs to the public.

The latter usually has some sort of registered license, and so they need to get their own liability insurance in NJ. A first-line supervisor in New Jersey is likely to be younger than the average for the state, and to earn less than the average for New Jersey.

Retailers deal in public to sell merchandise to other businesses for household consumption and so need Small Business insurance in New Jersey to cover all possible risks.

Retail Store Insurance in New Jersey

General statistics

About 6% of the total labor force in New Jersey was employed in the retail sector in 2020. 

Interesting fact – workers in NJ are ten time more likely to find jobs in general merchandise stores than in florists.

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What are the standard forms of retail store insurance policy types in New Jersey? 

General liability insurance.

The average general liability policy for retail stores in New Jersey covers a total of $2 million for the whole year, with a boundary of $1 million for a single event.

Professional liability insurance

Every retailers in New Jersey will see the need for a policy of at least $10000, and many choose much more when their own type of business warrants it. In some cases, the insurance company in New Jersey gives a discount to include a deductible of a few hundred dollars, to stop the nuisance of ill-considered claims.

Product liability insurance

The recommended level of cover in NJ, is worked out on the type of merchandise that the store provides as well as the level of sales.

Commercial vehicle insurance

As soon as goods leave your premises in New Jersey, your standard insurance stops cover. If you are doing your own issuing with a van, then you must have specific policy giving you commercial vehicle insurance in New Jersey for the vehicle, the driver and the contents.

Commercial insurance

Retail business depends on stock and a physical shop. This means committing your money into premises and goods, and you cannot afford to let this get damaged. Commercial insurance in New Jersey is especially designed to take into account the dangers that can end up costing you a lot of money.

Property insurance

New Jersey carries special risks when it comes to buildings, and each business must take out the necessary cover to protect property and contents. 

As well, the possibility of disasters is increasing because of climate change, so every retailer should take care to get all the protection necessary to cover even the most remote possibility.

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Business Income insurance

There has been a history of ups-and-downs in NJ, that have hit retail businesses hard. It is clever to get proper insurance in place before such a calamity occurs, rather than to expect that you can never be hurt.

Average costs of these types of insurance in New Jersey

Although every retail business is unique, there are enough examples of average quotes from insurance companies in New Jersey for us to give rough guidelines. Of course, you should always check with an insurance representative of what’s relevant for your business.

The below list is for annual premiums for the main types of insurance retailers need in New Jersey.

Types of insurance Price range
Commercial insurance $810 – $2688
Business income insurance $447 – $1238
Commercial vehicle insurance $1564 – $2997
Property insurance $1031 – $3398
Public liability insurance $350 – $639
General liability insurance $523 – $1266

Cost of insurance in New Jersey depends on many different factors

Please be aware that the above figures are based on averages for small retail businesses. The size and location of your business in New Jersey can have a big impact on the cost, and also the type of trade and inventory will.

For Example – a liquor store on the high street has a much different risk of robbery than a babywear shop conducting New Jersey retail sales that is located inside a large mall, so the costs of the insurance will be very different.

FAQ section:

Do you need business insurance in New Jersey?

Most retailers in NJ, will have to have at least some insurance, covering obligations because they are dealing with the public, and also probably to qualify to be granted to register with a business license in New Jersey . As well, insurance in New Jersey is especially designed to take into account the dangers that can end up costing you a lot of money.

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What is considered a retail store and what is not?

Some businesses use the title “shop” in their definition, but don’t really act as retailers.

For example:

  • auto repair shop
  • repair shop
  • tattoo shop
  • body shop
  • machine shop
  • motorcycle repair shop
  • auto body shop
  • dram shop
  • coffee shop
  • bike shop
  • tire shop
  • coffee shop
  • mechanic shop

A better classification would be if the business sells several of the following to the public:

  • Sport, recreation, and leisure goods.
  • General retail as in department stores and clothing retailers.
  • Books, newspapers, magazines and office supplies.
  • Specialty products for narrow sectors, like florists, jewellers.
  • Home living and homeware, trade, and gardening goods.
  • Apparel like babywear, kids, women’s and men’s clothing.
  • Food and beverages as in supermarkets, liquor stores, fruit & vegetable grocers and specialty food stores
  • Entertainment, communication, and technology goods.

Where to find the right insurance?

In every town in New Jersey you will be able to find a qualified insurance agent or broker that can advise you on your best options. Most independent brokers and agents work six days a week, with the following opening times.

Opening Hours:
Monday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Wednesday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Friday – 8:30 AM – 6:30 PM
Saturday – 7:30 AM – 1:30 PM