All NJ Businesses and Landlords – Be READY For The New Liability Requirements
Bill S1368 SaAca (2R) Session 2022 – 2023 – Requires business owners and rental unit owners to maintain certain liability insurance policies.
On August 5, 2022, New Jersey’s Governor Murphy signed S. 1368/A. 2687 (2022) into law. This law requires landlords and business owners to procure and maintain liability insurance for negligent acts and omissions. Much of this law came into effect on November 3, 2022, while the remainder of its sections was effective on February 1, 2023. These provisions of N.J.S.A. § 40A:10A-2 apply to new insurance policies issued after November 3, 2022. S. 1368/A. 2687, ¶ 3(a) (2022). If an insurance policy was already in effect when the law was approved on August 5, 2022, then this law applies to that insurance policy beginning February 1, 2023.
Please do not ignore this information as the fines will be pretty steep.
Additionally, beginning February 1, 2023, the statute will extend aspects of these requirements to smaller landlords. Owners of multi-family homes with four or fewer units, at least one of which is owner-occupied, will be required to maintain insurance in the amount of $300,000. So, the $500,000 amount is reduced to $300,000 for those rental units in a multifamily home where there are four or fewer units, and where at least one unit is owner-occupied. The portion of the law applying to smaller landlords affects insurance policies issued or renewed beginning February 1, 2023. S. 1368/A. 2687, ¶ 3(b) (2022)
N.J.S.A. § 40A:10A-2 requires that owners annually register their certificates of insurance demonstrating compliance with this law with the local municipality. The municipality may charge an administrative fee for the certificate. An owner’s failure to comply with the registration requirements in accordance with the law will result in a fine between $500 and $5,000. This includes the failure to submit your certificate.
We, at Eagle Insurance Services Agency, are ready to give you assistance to make sure you are in full compliance with this law by updating your policies. We are experienced in all aspects of this law and can’t stress enough how important it is to know your liability limits. We want to educate business owners and property owners of the policy changes now that the law is official.
Do you know what your liability limits are? If you’re not sure, please call us today.