Commercial Insurance In New Jersey
Every business is required by law to carry commercial insurance to cover the equipment
, operations, and employees associated with conducting business. Personal insurance policies will not pay claims when incidents happen within the life of a business. While commercial insurance premium rates are somewhat higher, the coverage is extensive when an event requires payment for damage to property that belongs to the business or someone else. Three major categories of commercial insurance exist in New Jersey, including property, liability, and worker's compensation insurance.
Within the commercial property insurance category, many specialty coverage categories can be added to the basic policy. A manufacturing firm would add machinery and boiler insurance to cover replacement of equipment and lost production income in the event of a fire or natural disaster. Businesses that have new buildings under construction would carry builder's risk insurance to cover the cost of weather damage to the building prior to completion. Many businesses in areas where hurricanes and tornadoes happen will carry business interruption insurance to cover lost expenses and income resulting from storm damage. Those events are rare within the borders of New Jersey, and few businesses would carry that coverage this far north. On properties that were built many years prior to current building codes, a business will carry ordinance and law insurance to protect against the cost of having to completely rebuild the building if some portion of it is destroyed by fire.
Automobile liability commercial insurance in New Jersey is required to cover any damage caused to business or other property through the use of trucks, vans, cars, or trailers. Other specialty types of liability insurance cover certain professions, such as malpractice insurance for physicians and therapists. Errors and omissions insurance coverage is carried by insurance agents and notary publics as well as attorneys and accountants to cover the inadvertent mistakes that can happen when conveying information to clients. Liability insurance carried by companies is meant to cover the interests of the company.
Worker's compensation insurance is meant to cover the medical costs when an employee is hurt on the job. Instead of drawing on the standard health insurance coverage, the worker's comp policy is specially designed to pay for lost wages and medical expenses for the employee. Carrying this coverage will prevent negligence lawsuits from employees. The State of New Jersey requires companies with employees to maintain an active worker's compensation policy.
Research is the most effective way to know which specialty coverage applies to your business. Find a reputable agent and insurance company to answer all of the questions prior to signing the paperwork. Review all the fine print and ask about any obscure terms. Consider the business location and all the activities conducted on the premises and in business vehicles when determining the best coverage. Commercial insurance coverage should be reviewed annually and whenever major improvements are made to facilities or business practices.
by: Brenda Fullwerth
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