When it comes to running a small business, there’s lots to think about besides your core operations, such as finding insurance coverage. Providing insurance can help your team access the care and essentials they need, and it can also boost employee retention.

As a local insurance broker, I’ve helped many people secure essential small business insurance in New Jersey. Below, I’m answering some of the most frequently asked questions regarding small business insurance requirements and popular plan options.

As a small business owner in NJ, am I required to provide health insurance?

This all depends on the number of employees that you have. If you employ 50 or more people, then you must provide “minimum essential” healthcare coverage. However, this only applies to employees who work at least 30 hours per week. If you fail to provide these employees with the required healthcare coverage, then you’ll have to pay an annual penalty.

In order to meet the minimum essential requirements, the health insurance plan must cover 10 key areas of health services: outpatient care, emergency services, hospitalization, maternity and newborn care, mental health, prescription medications, rehabilitative care, laboratory services, preventive and wellness services, and pediatric care.

What is the best option for small business health insurance?

You may be understandably overwhelmed when choosing a health insurance package for your small business. After all, health insurance can be a significant expense for your business, but you want to make sure your employees have access to the care they need.

Fortunately, there are many options to choose from. The most common small business health insurance options include:

• Small group insurance: With small group insurance, the employer purchases the plan and then offers it to employees. This has been the traditional option for most small businesses. Small group insurance offers significant tax benefits for business owners, solid coverage for employees, and it's a great tool for employee retention. However, it tends to be expensive and not very customizable.
  
  
• Self-funded plans: Self-funded plans require employers to pay out of pocket for medical claims as they arise, and employees pay monthly premiums directly to the employer. This is a good option for companies with larger cash reserves who want to manage their own risk pool. Employers can save money during years with low claims, but should be prepared to spend more during years with higher claims.

• HRAs (health reimbursement arrangements): HRAs are increasingly becoming more common. They are affordable, flexible, and offer major tax benefits for employers. With this option, employers provide non-taxed reimbursements to employees for health insurance or medical costs (up to a certain limit). This takes risk management out of the equation, and it gives greater flexibility to employees.

Where can I get small business insurance in New Jersey?

You can obtain small business insurance in New Jersey by either purchasing a plan directly from a carrier, or by working with an insurance broker. In many cases, it’s better to work with a broker. This is because they can simplify the process, help translate the fine print for you, and make sure you’re getting a plan that satisfies state requirements and fits your budget.

Let’s chat about your small business insurance needs in New Jersey

If you’re having trouble finding an insurance plan that suits your business, I’d be happy to assist. I’m an experienced broker who has helped small business owners throughout the state secure the insurance they need.

Contact me today to learn more about small business insurance in New Jersey.