Having a business in New Jersey can come with a lot of success in a state whose largest industry is chemicals, along with being one of the foremost research centers in the world. Additional manufacturing industries include pharmaceuticals, instruments, apparel, machinery, and electrical goods; New Jersey is also home to many large oil refineries. “The Garden State” is home to 20 Fortune 500 companies, including Johnson & Johnson, Merck, Medco Health Solutions, Prudential Financial, and Honeywell International. The second largest industry in New Jersey is tourism due to the state’s many resort areas and the casino area of Atlantic City. But no matter type of small business you operate in the state, business insurance in New Jersey is essential. The following explains the various types of business insurance policies:
Standard Business Insurance Coverages in New Jersey
Business Owners Insurance in New Jersey is an insurance policy detained by an entity, commonly referred to as a BOP, as an extensive small business insurance package that provides a number of liability coverages in one package. Property insurance and general liability are two important coverages that a business owners insurance policy integrates. The insurance coverage for employers in the Garden State transfers risk away from the owner of the enterprise to the insurance company by giving them protection for a range of liability, such as buildings, equipment, and liabilities for legal purposes. Common indemnity claims that small business owners insurance coverage protects you from are: injury to an employee, income loss, specialized liability claims, important papers, equipment failure, fire, authorized liability claims, employee fraud, money and securities, and property claims. Additional components for the New Jersey organization may be supplemented from the original BOP coverage depending on the possible risks of the business.
General liability insurance in New Jersey is offered to companies as protection from financial loss that may rise from insensitive acts, omissions, or both, caused by the entity or their staff that sometimes result in physical harm or property damage. Common types of exposures usually covered under general liability insurance are contractual liabilities, liabilities from merchandise sold, and accidents on the premises of the company. The injury or damage might be from lack of concentration or not deliberate. General liability insurance for New Jerseyan small business owners may be a single policy or can be part of several policies.
A package policy is a restricted type of insurance policy for a business proprietor that includes several types of insurance to be found in one insurance policy, called a package or bundle. The typical package policy in New Jersey combines general liability insurance (written about above) and commercial property (written about below); keep in mind a package policy may be positioned to include nearly every type of coverage, which depends on the unique needs of the enterprise. A package policy is helpful to an employer of New Jersey as it allows for a great range of flexibility to adapt to a policy mainly for the needs and risk exposures of the company.
Commercial Property Insurance in New Jersey is available protection coverage for a range of not only Newark, New Jersey commercial property, but commercial property throughout the state. It includes important papers (valuable papers), building, equipment, goods, furniture, stock, and personal property. Commercial property insurance offers protection for New Jersey-based businesses against various types of perils, including windstorm, hail, explosion, fire, burglary, natural disasters, and lightning strikes. A variety of professionals benefit from commercial property insurance; these include retailers, casinos, manufacturers, tourist shops, not-for-profit entities, and service-oriented organizations.
The state of New Jersey has a requirement that any company with employees working for them have Workers’ compensation insurance to provide coverage against employee work-related injuries and occupational illnesses. Workers’ compensation insurance in New Jersey is a no-fault, state-mandated insurance organization that offers benefits to staff who suffer injuries or illnesses on the job. Because Workers’ compensation is required for New Jerseyite companies, the entity may be liable for fines and civil penalties if they fail to carry it, and can also lead the company to being responsible for the cost of injuries received by their employees. By having workers’ compensation insurance for your New Jersey small business, workers benefit from medical care and lost income coverage with the promise that they will not sue their employer as for the injury or illness.
As a New Jersey employer with at least one vehicle, your business should be protected by commercial auto insurance. Commercial auto insurance in New Jersey offers financial security to business professional and their employees by providing coverage for that company’s use of trucks, vans, cars, and other vehicles. Commercial auto insurance provides protection against damages and medical costs that result from accidents, as well as vandalism and damage from natural disasters such as hail storms. Coverage for New Jersey businesses includes vehicles which are owned, rented, leased or hired by the employer, and includes employee-owned vehicles which are used for work-related duties. For this reason, it’s recommended that companies purchase a commercial auto insurance policy if workers use their own vehicle for business operations; this is called non-owned commercial auto insurance.
Commercial umbrella insurance in New Jersey fills the gap between your general liability insurance and your commercial auto insurance since these types of liability policies might have coverage limits and not cover all events that are deemed ruinous and unforeseen. Umbrella insurance is a recommended resource for firms in the state of New Jersey because it fills in gaps in your primary business liability coverage. Umbrella insurance is a great way to have additional protection against property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in New Jersey to Consider
Errors and Omissions insurance policies provide New Jersyan small business owners and professionals with protection from lawsuits and claims made by customers or clients for negligent acts, careless duties, mistakes, and oversights that might be made through business operations and resulted in a loss of wages or production on the part of the client or customer. Errors and Omissions insurance in New Jersey provides help with legal defense and court costs, as well as with settlements which is detailed on the insurance contract. Just like medical doctors are sure to be covered with malpractice insurance, owners of enterprises should have errors and omissions insurance in they offer services or consulting advice, whether with subcontractors or directly.
Professional liability insurance in New Jersey offers added protection for professionals, including financial analysts, contractors, and marketing consultants, from being liable for the legal cost of defending against a claim of carelessness, mistakes, failure to perform, or omission made by a client, along with damages owed in that claim. The coverage’s key focus is on the fiscal burden on the part of the client from this particular kind of claim with respect to the goods or service provided by the staff. Even if the legal actions turn out to be unsubstantiated, professional liability insurance may offer claim coverage for the New Jersey firm. Professional liability insurance in the state of New Jersey is required by law in various industries, primarily in medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance in New Jersey (EPLI) offers protection to employers toward accusations of discrimination, wrongful termination, breach of contract, sexual harassment, mental distress, careless hiring and promotion choices, and objectionable claims. Employment practices liability insurance is based on the laws, acts, and protection from Age Discrimination in Employment Act, VII of the Civil Rights Act of 1964, and Family and Medical Leave Act — which the Equal Opportunity Employment Commission (EEOC) properly enforces.
Fidelity Bonds in New Jersey
Fidelity bonds in New Jersey provides businesses with protection against losses, such as embezzlement, fraud, or theft by one or more of their workers. Reimbursement from these types of acts is usually not feasible since the money is often already spent in many cases, so fidelity bonds offer companies a security against having to be liable for these types of financial burdens. Even companies with additional protection against these types of dishonest acts, including employee screening, internal control, and close supervision, it doesn’t always suffice. Financial losses suffered from employee thefts of money, property, or securities, are covered under fidelity bonds insurance in New Jersey. The three most common types of fidelity bonds include business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in New Jersey
A surety bond is an obligatory agreement or contract shared mutually between three parties: the principal, obligee, and insurance company, or surety. The surety bonds pledge they will indemnify a principal if a obligee fails to meet their commitment, such as fulfilling the terms of the contract. A surety bond offers protection to the recipient from loss if the contract is not fulfilled, while the surety company becomes responsible for a non-performing principal. A surety bond is typically required for monetary reward. Owners of New Jersey-based firms may require a surety bond to assure payment of utility bills or state sales taxes, while a contractor may need to post a bond to promise work or be eligible for licenses. While surety bonds in New Jersey are commonly used in the construction industry, surety bonds are also used by brokers for mortgages, medical supply companies, automobile dealerships, health and fitness club establishments, notaries public, and others. Since many small companies need and use bonds, there are a range of types and features of surety bonds in the state of New Jersey provide a myriad of guarantees.
Operating a quaint hotel in Jersey City or electronics store in Newark or any other small business in New Jersey, offers you the opportunity for success in the “Garden State.” Among the many opportunities available to New Jersey business owners, come potential risks associated with any business venture, and may include risk exposures like liabilities, litigations, employee fraud, theft, or damage from fire, extreme weather conditions, or natural disasters. In order to protect your business and assets, additional business insurance policies aside from your standard business insurance is crucial for the best possible safeguard.