NEW JERSEY SMALL BUSINESS INSURANCE

General liability coverage, also called commercial general liability insurance, is one of the most common and important forms of business insurance in New Jersey.

If someone claims that your business caused injury or destroyed property, general liability insurance can help pay for damages and lawsuit costs if you’re sued.

For example, a homeowner accuses a Newark-based HVAC company of improper wiring that starts a fire and causes significant damages. General liability insurance could help cover the cost of repairs and pay attorney fees if the client takes the HVAC company to court.

Construction and cleaning companies in New Jersey might want to add tools and equipment coverage to their general liability policy. This optional coverage can help pay to repair or replace work gear that’s lost, stolen or damaged outside of normal wear and tear.

New Jersey state law requires most businesses with employees to carry workers’ compensation coverage. This kind of coverage provides protection when employees are hurt on the job, and can help cover medical bills and lost wages during their recovery.

For example, two employees at a construction company in Paterson suffer back injuries while moving a beam on the job, leaving them unable to work for a month. Workers’ comp could help pay for their medical expenses, physical rehabilitation bills and cover lost wages while they get better.

Did you know that personal car insurance might not cover accidents that happen while you or your employees are driving for work? That’s why New Jersey requires small businesses that own vehicles to have commercial auto insurance.

Here’s an example of how commercial auto can help cover medical costs, vehicle damage and legal defense costs after business driving mishaps:

A self-employed Jersey City carpenter hits a toll booth while driving to a job in New York City, damaging his van and requiring a tow truck and an ambulance. Commercial auto coverage could help pay for vehicle damages and the hospital visit. If the tolling authority decided to come after him for damages, coverage could help pay legal defense fees.

Commercial auto insurance packages in New Jersey may include hired and non-owned auto coverage. This optional insurance upgrade can help pay for business accident damages for employees who occasionally drive their own cars for work or rent vehicles.

Commercial property insurance in New Jersey can protect the things you need to run your business, such as equipment, inventory and even your business location if you own the property.

For example, a hotel restaurant in Cape May experiences a sprinkler malfunction in the dining room that ruins the furniture and carpeting. Commercial property insurance could help pay to clean up the mess and replace the damaged business property.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations prone to flooding or hurricane damage might have limited coverage.

Professional liability insurance, which is also called errors and omissions coverage, assists small businesses when they’re accused of professional negligence.

Omissions insurance can help cover costs related to claims of subpar work, missed deadlines or incomplete jobs that cause financial losses. This type of coverage can help businesses compensate clients for work mistakes and includes legal defense benefits.

For instance, the owner of a Trenton office building says that a carpet cleaning company forgot to service a tenant’s boardroom the night before an important meeting. As a result, the tenant canceled its lease, and the landlord lost rental income.

Professional liability coverage could help the cleaners cover any out-of-court settlements, along with legal costs if the building owner filed a lawsuit.