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Types Of Insurance Every Small Business Should Buy in NJ

siadmin December 6, 2018 Business

If you own a small business, you need business insurance. In New Jersey, a small business is defined as having less than 500 employees. That’s a lot of businesses! According to the Small Business Association (SBA), 1.8 million people in NJ are employed by small businesses, or roughly half of the private workforce.

To protect your investment and care for employees and customers, insurance is a necessity. There are different types of business insurance, which can make it confusing for business owners. In this post, we’re going to cover the types of insurance that we recommend for most small companies in NJ.

General Liability

Every business should have a general liability policy, even if they are based out of the home. Liability insurance provides defense and damages if you, your employees, or your products/services cause bodily injury or property damage to another individual.

Property Insurance

If you own a building, or have expensive equipment such as computers or inventory, you should consider property insurance. This policy protects your property if there was a fire, vandalism, theft, smoke damage, etc. If your business is unable to operate for a few days or weeks, business interruption insurance could be used to offset these losses.

Business Owner’s Policy (BOP)

A BOP typically includes property insurance, vehicle coverage, liability insurance, and business interruption insurance. We strongly encourage small businesses in NJ to take out a BOP because it’s comprehensive and costs less than buying these insurance policies separately. You also have room to adjust the policy to fit your business.

Commercial Auto Insurance

If you have company vehicles, commercial auto insurance is a must. Not only does this insurance protect your vehicles but also the people driving them. If there is equipment or products in the vehicle, they will be protected as well.

Workers’ Compensation

Workers’ comp provides insurance to individuals who are injured while working. The insurance provides both wage replacement and medical benefits until the employee is ready to return to work. When an employee uses these benefits, they give up their rights to sue your business. In NJ, you must have workers’ compensation if you employ one or more employees.

Professional Liability

Also known as Errors and Omissions Insurance, this policy provides defense and damages if your services are not delivered properly. Some contracts will not be approved without this insurance, though it is optional for some businesses. We recommend that any professional firm that employs lawyers, accountants, consultants, or insurance agents have professional liability.

This list does not cover all of the business insurance types available, but these are the most important. For a more personalized look at your NJ business and the protection it needs, contact the Soden Agency today.