No matter what type of business you run, you need business insurance to protect your investment. There are many types of business insurance in New Jersey, but the coverage you choose will depend on your operations and needs. To help you make the right decision, let’s learn about the different types of business insurance in NJ.

Business Liability Insurance

All businesses need liability insurance, but it’s not as simple as finding one policy. There are many types of business liability insurance:

General Liability Insurance

This type of insurance protects companies against claims for personal injury, bodily injury, or property damage.

Umbrella Liability Insurance

A type of advanced liability business insurance, umbrella liability insurance is used to protect businesses from major claims and lawsuits. Unless a company has umbrella insurance, they could end up paying for excess damages, medical bills, and legal fees.

Professional Liability Insurance

PL insurance covers companies in the event of negligence claims. These claims might accuse the business of harmful mistakes or performance failures.

Employment Practices Liability Insurance

EPL insurance covers employers if their staff file discrimination based claims. Alleged claims could be based on wrongful termination or discrimination based on age, race, disability, or gender.

Cyber Liability

Cyber liability covers a business in the event of a cyber security breach. For example, if a business experiences a hacking scandal resulting in customer data being exposed, a Cyber Liability policy covers the business for financial losses and supports the company to rebuild its reputation.

As you can see, even one type of business insurance can have several subcategories. If you’re confused about which types of business insurance you need, it’s best to talk to your local New Jersey insurance provider.

Property Insurance

Property insurance is a policy that protects both your business premises and equipment. Whether you rent or own your property, you’ll need some kind of property insurance to protect your assets and interests. If your property or your equipment is damaged, destroyed, or stolen, you’ll be covered under property insurance. A typical property insurance policy will cover the following areas:

• Any inventory that’s stored in your warehouse or office.
• Equipment and tools that you use for your company.
• Your business furniture, including tables, chairs, and couches.
• Any personal property that’s stored at your business premises.
• Business computers and other tech equipment.
• Important documents.

What Does Property Insurance Usually Cover?

Under a property insurance policy, you’ll be covered if your business property becomes damaged in a fire. You’ll also be covered if a customer experiences an injury while on your business premises. If your equipment is stolen, and you experience downtime as a result, you’ll be covered for that too.

Business Interruption Insurance

According to Investopedia, ‘Business interruption insurance is insurance coverage that replaces income lost if business is halted due to direct physical loss or damage.’

If you can’t run your business because of an incident or accident, business interruption insurance can cover your financial losses. You can use this type of insurance to cover expenses such as payroll, utility, bills, and more.

Workers’ Compensation Insurance

Workers’ compensation insurance covers medical costs and lost wages if a member of staff is injured or sick. Employees are covered under the following categories:

Disability Benefits

If an employee is injured, and cannot continue to work, workers’ compensation entitles them to disability benefits. These benefits are used to cover wages lost, and may be temporary or permanent.

Medical Benefits

If an employee gets injured, or suffers a work-related illness, that employee is covered by workers’ compensation. These policies can cover medical expenses, including doctor visits, physical therapy, medication, or pain management.

Death Benefits

If an employee dies in a work-related accident, workers’ compensation pays benefits to their dependents.

Rehabilitation Benefits

When a worker suffers permanent disabilities, they are entitled to rehabilitation benefits. If the person can no longer perform their old job, these benefits cover retraining, tuition, learning materials, and skill assessments.

Auto Insurance

If you or your employees use a car for work, your vehicles must be insured too. You’ll need this coverage to protect yourself in the event of a car accident. Auto insurance policies can protect your business from physical damage, towing costs, and liability.

Bonding

Bond insurance refers to a policy that’s purchased by a bond issuer. It’s used to guarantee the repayment of both primary and related interest payments. Bond issuers purchase this insurance type if they are looking to boost their credit rating, and decrease the interest amount. You might have also heard this insurance referred to as financial guarantee insurance.

Commercial Umbrella Insurance

Commercial Umbrella Insurance offers companies extra coverage to protect their finances and assets. Under some circumstances, an expensive lawsuit will exceed the limits of a company’s main insurance policy. Commercial Umbrella Insurance is a way to access extra protection.

If businesses exceed their primary coverage, and they do not have an umbrella policy, they could be obligated to pay extra damage expenses and legal fees out of pocket.

A commercial umbrella insurance policy can also cover advertising or personal injury, such as reputational damage. Personal injury covers many areas, including privacy invasion, slander, libel, wrongful eviction, or false arrest.

Inland Marine Insurance

Inland Marine Insurance is used to cover equipment, materials, and products that are transported across land. It can also include equipment that’s stored with a third party.

Inland Marine Insurance covers property that is transportable or movable. These policies cover:

• Networking tools and communication equipment.
• Medical & scientific equipment.
• Cargo vans, food trucks, and other transportation equipment.
• Construction supplies and tools in transit.
• Sculptures, photography, and paintings.

If you’d like to discuss your business insurance needs in New Jersey, contact the Calhoun Agency today.