How to Choose the Right NJ Business Insurance Coverage

A person who is opening a small business in New Jersey should take the time to look into NJ business insurance laws. Some forms of insurance may be required by law, depending on the nature of the business. Other forms of business insurance are optional but may be good to obtain nonetheless.

A business that is opening an office will naturally need property insurance. Property insurance will cover the building itself should it be vandalized or broken into. However, a person who wants coverage in case of a natural disaster will have to purchase such a policy separately. If the business has a vehicle to its name, then the business owner will be required by law to take out commercial auto insurance.

A business owner who hires employees will need to take out various insurance policies. Health insurance for employees may not be required by law, but many employees consider this type of coverage very important and may move on to another place of employment if this is not provided. One will also need to take out insurance that covers on the job injuries. This insurance is not the same as health insurance; it will only cover an employee’s medical bills if he or she was hurt while at work.

Business interruption insurance is another form of NJ business insurance that is helpful to have. It provides compensation for a business that has to shut down unexpectedly. For instance, if the premises are damaged in a snowstorm, the business will need some time to make repairs. While property insurance will cover the cost of repairing the premises, it will not cover the income lost while the business is not in operation. Business interruption insurance will enable a business to handle the loss of income.

Errors and omissions insurance is another very helpful form of insurance to have. In fact, nearly every business can benefit from this form of insurance. It will protect a business from financial ruin should the business be sued. Even if an employee made a mistake that caused harm to a client, errors and omissions insurance will help a business owner to either settle the case out of court or handle the legal bills that inevitably result from dealing with a lawsuit. As most anyone can sue a business for any one of a number of reasons, one should seriously consider obtaining errors and omissions insurance.

A first time business owner may want to consult with a small business attorney before obtaining NJ business insurance. An attorney will be able to tell business owners which forms of insurance are mandatory and which are not. It is also advisable to call a number of insurance agencies and compare prices, terms and conditions on insurance policies. A business owner who keeps his or her business properly insured at all times will not regret it.

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