Paterson, NJ’s economy is dependent on small businesses. Small, privately-owned companies make up a sizeable majority of all the businesses in the city. Many businesses in the city benefit from being in the Urban Enterprise Zone, which allows them to charge their customers a 3.5 percent, rather than 7 percent sales tax. If you are one of the many entrepreneurs who have opened a small business in this diverse city, you may benefit from purchasing a Paterson, NJ business insurance plan.
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Top 10 Industries for Small Businesses in New Jersey
- Professional, scientific and technical services, 104,600 companies
- Real estate and rental leasing, 71,000 companies
- Construction, 52,800 companies
- Healthcare and social services, 47,900 companies
- Retail trade, 45,300 companies
- Administrative, support and waste management services, 38,700 companies
- Transportation and warehousing, 33,800 companies
- Arts, entertainment and recreation, 31,300 companies
- Finance and insurance, 21,700 companies
- Educational services, 19,000 companies
Different industries have different liability risks. For example, complainants can bring malpractice suits against those in the medical field or faulty product suits against manufacturing concerns. Different business types have different needs, but each can benefit from a custom-built business insurance policy.
Is a Paterson Business Insurance Policy Mandatory?
Like most states, New Jersey requires business owners to have certain insurance coverage for their employees. This includes workers compensation and state unemployment insurance. Business insurance is generally not mandatory unless you have taken out a large loan for your business, in which case your lender may require you to protect your business collateral with a policy. Regardless of whether or not you are required to carry it, a Paterson business insurance policy is a good idea. It is the best way to protect your investment in your business and prevent unexpected financial hardships from forcing your company to close its doors.
Passaic County Industries that Experienced Job Growth
- Education and health services job numbers grew by 12.2% despite having decreased statewide by 10.7%.
- Professional and business services job numbers grew by 3.9%, although these jobs also decreased statewide by 1.2%.
- Leisure and hospitality job numbers increased by only 0.1% but increased statewide by 1.2%.
This county, like most of the country, lost many jobs during the recent ongoing recession. As the economy begins to recover, job growth will be slow but steady. It may be a good time to take out business loans to invest in the growth of your business while interest rates are low, but it is best to proceed with caution while the market is still recovering.
Passaic County Industries Expected To Experience the Most Growth
- Education services jobs expected growth, about 3.6% annually
- Arts, entertainment and recreation jobs expected growth, 1% annually
- Real estate, rental and leasing jobs expected growth, 0.9% annually
- Healthcare and social assistance jobs expected growth, 0.8% annually
- Accommodation and food services jobs expected growth, 0.8% annually
If you own a business that has employees, you likely set it up as a corporation or an LLC. While these sorts of corporate business structures will protect your personal assets in the event that someone sues your company, the business itself will still be unprotected. If you want to protect your investment through full comprehensive coverage for your business, you need a Paterson business insurance policy.
What Does Business Insurance Cover?
There are many different business types, sizes and industries, and each carries its own unique risks. Business insurance policies have many policy options that will allow you to customize your policy to meet your business’s unique coverage needs. Your Paterson business insurance coverage may include the following:
- Property insurance: If your business should suffer property loss or damage due to vandalism, theft, fire or covered weather events, having property insurance coverage will provide compensation for your loss.
- Liability insurance: Commercial liability insurance protects your business from claims made by third parties for which your company is legally liable. This coverage may also provide coverage for company-hired independent contractors. Liability coverage includes compensation for court costs and legal fees associated with covered events.
- Fidelity insurance: This coverage protects business owners from losses caused by dishonest employees. It covers any unauthorized activities carried out by employees such as embezzlement, fraud, and technology risks.
- Business interruption insurance: If you must cease or suspend operations for a given amount of time due to problems associated with a covered event, business interruption insurance will provide compensation for any income the company would have received if it had not stopped sales or production.
How Can You Find the Best Business Insurance Policy?
Insurance professionals agree that, when shopping for an insurance policy, you should obtain a minimum of three policy quotes. Engaging the help of an agent while looking for your ideal Paterson business insurance policy can save you time and money. Network agents can use their relationships with several different insurance carriers to quickly provide you with a variety of competitively priced policies. Our insurance agents in your neighborhood are available to answer your questions and explain policy options.
Contact an agent now to learn more and to obtain a variety of Paterson commercial insurance quotes for policies tailored specifically to your business.