Until recently, there was no requirement under New Jersey (or Federal for that matter) law requiring a business owner to purchase Liability Insurance. This all changed when New Jersey Governor Murphy signed P.L. 2022, c.92 on August 5, 2022. Under this new state law, it is now illegal for any business or owner of a rental unit not to have liability insurance. The New Jersey law has left the implementation and enforcement of this new law to the local municipality.

Flemington Borough in Hunterdon County, New Jersey is one of the first municipalities to act on this new law. They have issued an ordinance which requires businesses and owners of rental units to register with the Borough, pay a $15 fee, and provide the Borough with proof of liability insurance.

The following entities must register and provide proof of insurance:

• Businesses, which shall mean, any person intending to sell or dispose of or to offer to sell or
  dispose of any good, wares, merchandise or render any services for fees within the Borough.
• Owners of single rental dwelling units
• Owners of multiple dwelling rental units
• Owners of multi-family homes that include rental units, even where one unit is owner-occupied

Flemington Borough is sending out notices to those properties affected. If you do not receive one, we
have copies for you.

How much insurance is required?

The New Jersey law now requires the owner of a business or a rental unit or units to carry liability insurance of no less than $500,000. The owner of a multi-family home which is four or fewer units, one of which is owner-occupied, is required to carry limits of no less than $300,000.

How to Provide Proof of Insurance?

While the Flemington registration form asks you to attach a copy of your liability policy, the State law requires you to file a Certificate of Insurance. We believe that in general, it is a bad idea to share your insurance policy with anyone other than your mortgage company. A Certificate of Insurance is a more concise and efficient way to share proof of your liability coverage without disclosing other personal information. For example, your insurance policy may include a schedule of valuable property, like jewelry or artwork that is specifically covered by your policy.

We are happy to issue a Certificate of Insurance for your business or property for the Borough of Flemington. Of course, there is no charge to you for this service. To order a certificate of insurance, please call our office or send a request to stacey@newborninsurance.com. We will need to know the name of the business, the location address of the business or property in question (many of our clients have different mailing addresses than the location of their business or rental units).

If you are in a municipality other than Flemington Borough that enacts a registration requirement, please let us know and we will send you a Certificate of Insurance. We are here to help you manage your business and personal insurance program. Please contact us anytime if you have questions regarding the matters discussed in this article or on any aspect of your insurance plan.