Key Takeaways
- New Jersey commercial property insurance must comply with filed and approved rates
- Commercial policies require specific disclosure of terrorism coverage options under TRIA
- Surplus lines brokers must follow specific placement procedures for commercial risks
- Commercial properties in high-risk areas may need FAIR Plan commercial coverage
- Business interruption coverage has specific New Jersey requirements
Last updated: January 2026
New Jersey Commercial Property Insurance
New Jersey regulates commercial property insurance with specific requirements for rates, disclosures, and coverage availability.
Rate Regulation
Commercial property insurance rates must be:
- Filed with DOBI before use (for most lines)
- Not excessive, inadequate, or unfairly discriminatory
- Based on actuarially justified loss experience
- Subject to DOBI review and approval
Commercial Rate Filing
| Line | Rate Regulation |
|---|---|
| Commercial Property | Filed and approved |
| Commercial Auto | Filed and approved |
| Workers' Compensation | Filed and approved |
| Large Commercial Risks | May have more flexibility |
| Surplus Lines | Not rate-regulated by NJ |
Terrorism Insurance
TRIA (Terrorism Risk Insurance Act)
- Federal program providing terrorism insurance backstop
- New Jersey insurers must offer terrorism coverage
- Policyholder can accept or reject terrorism coverage
- Disclosure of coverage terms required
Required Disclosures
- Coverage limits for terrorism
- Premium for terrorism coverage
- Right to accept or reject
- Exclusions and limitations
- Certified vs. non-certified acts
Commercial FAIR Plan
The New Jersey FAIR Plan also serves commercial properties:
Commercial Coverage
- Basic fire and extended coverage
- Building and business personal property
- Higher limits available than residential
- Requires evidence of voluntary market declination
- Subject to inspection requirements
Surplus Lines Insurance
New Jersey allows surplus lines insurance for risks not available in the admitted market:
Surplus Lines Requirements
| Requirement | Details |
|---|---|
| Diligent Search | Must document inability to place in admitted market |
| Eligible Insurer | Must be on NJ eligible surplus lines insurer list |
| Surplus Lines Broker | Must use licensed SL broker |
| Surplus Lines Tax | 5% of premium |
| Disclosure | Must disclose SL status and guaranty fund exclusion |
| Stamping Office | File with NJ Surplus Lines Stamping Office |
Export Procedure
Before placing a risk with a surplus lines insurer:
- Document attempts to place in admitted market
- Verify insurer is on eligible list
- Obtain required acknowledgments from insured
- File with Surplus Lines Stamping Office
- Collect and remit surplus lines tax
Business Interruption Insurance
New Jersey has requirements for business interruption coverage:
Key Provisions
- Must clearly define covered perils
- Waiting/deductible period disclosed
- Period of restoration defined
- Extended period of indemnity options
- Civil authority coverage requirements
Coverage Considerations
- Physical damage trigger typically required
- Virus exclusions may apply
- Supply chain coverage available
- Contingent business interruption options
Extra Expense Coverage
- Covers costs to continue operations during restoration
- Separate limit from business interruption
- New Jersey requires clear disclosure of coverage terms
- Important for businesses with continuity needs
Test Your Knowledge
What must a surplus lines broker do before placing a commercial risk with a surplus lines insurer in New Jersey?
A
B
C
D
Test Your Knowledge
Under TRIA, what must New Jersey commercial property insurers do regarding terrorism coverage?
A
B
C
D