Legislation that would require businesses and certain rental units to carry insurance passed the state Senate (25-11) on May 26.

The bill, S-1368, sponsored by Senate President Scutari, D-22, would require business owners to purchase liability insurance in an amount not less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence. Owners of multifamily homes with four or fewer units are required to maintain liability insurance in an amount not less than $300,000.

The legislation was amended in March to require both business owners and rental unit owners to register a certificate of insurance, demonstrating compliance with this insurance requirement, with the Division of Local Government Services in the Department of Community Affairs.

The legislation has been sent to the state Assembly and it has been referred to the Assembly Financial Institutions and Insurance Committee for further consideration. A same-as bill (A-2687) was introduced and referred to the same committee in February.