New Jersey Commercial Insurance Types

If you own a business, it is important to protect yourself against problems that may arise. New Jersey commercial insurance is designed to protect your business and your personal assets in the event your premises are damaged or you are faced with a liability lawsuit because of injuries or damages to a third party's person or property. Binding business owners insurance is important for any business. With a variety of different coverage options available that can be tailored to suit your commercial needs, business owners can build a custom policy that keeps them protected against a variety of different exposures.

Business Building Insurance

Business owners can purchase insurance policies separately or in a BOP package. Property Coverage can be tailored to cover business owners who are renting the property or those who actually own the premises. Understandably, a tenant’s policy will be lower in the price as it will not cover the actual dwelling. Each policy will cover business property against physical loss or damage by theft. Contents coverage also referred to as business property, will cover office furniture, computers, equipment, materials and more. Because there are limits on coverage for monies, records, papers, and data, some business owners may need to purchase additional endorsements.

General Liability

If you purchase a New Jersey commercial insurance BOP package, both the property and general liability coverage will be packaged into one policy. Commercial general liability will pay for claims, legal defense costs and judgments up to the limits listed on the policy declarations. General Liability coverage is designed to cover injuries, property damage, personal injury or advertising injury suffered by a third party because of the company’s unintentional negligence. While standard limits are $100,000 in most policies, a majority of business owners choose to carry limits of $1 million and a Commercial Liability Umbrella policy to prevent gaps in coverage.

Professional Liability

Professional Liability, also referred to as Errors and Omissions insurance, will cover business interactions with your clients. Claims that are normally excluded within a general liability policy will be covered in your E&O insurance. Breach of contract and providing your clients with inaccurate advice are common claims covered by a Professional Liability policy. In addition to claims, legal defense costs, settlements, judgments and the costs to investigate a claim are covered. Any business offering professional services should carry E&O insurance.

Owning a business is a huge responsibility. Business owners are susceptible to all types of risks. In order to protect yourself against these risks, you must build a comprehensive insurance portfolio. Consult a commercial insurance agent or broker and create a plan that fits your budget and your needs. By considering all of the "what ifs" you will ensure you are protected against all the common risks.

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