New Jersey Commercial Property Insurance

New Jersey is home to more than 884,000 small businesses. Whether you own, rent, or lease your business property, you need the right business insurance to protect your building and the contents inside. 

Commercial property insurance is a critical part of business insurance coverage. Since every business has its own needs, working with a New Jersey independent insurance agent will ensure that you get the coverage that fits your company.

What Is Commercial Property Insurance? 

Commercial property insurance is a type of business insurance that protects your business structures, assets, equipment, furniture, and inventory from a covered cause of loss.

This insurance is critical for most businesses to be properly insured. 

Leading risks to businesses in the US from 2018 to 2021

Natural catastrophes are one of the top five risks for businesses. Work with a New Jersey independent insurance agent to purchase commercial property coverage. 

What Does Commercial Property Insurance Cover in New Jersey?

Commercial property insurance will help pay to repair or replace your personal assets and business property should you experience a loss from one of the following:

• Fires
• Storms
• Thefts and vandalism
• Burst pipes
• Wind and hail

The following property is covered under a commercial property policy

• Structures and buildings
• Equipment
• Furniture
• Inventory
• Supplies
• Fixtures

A commercial property policy will also help cover costs associated with stolen or damaged property that is temporarily under your care.

What Doesn't Commercial Property Insurance Cover in New Jersey?

Commercial property insurance is a specific type of business insurance that only covers your personal property. Should you experience a loss or damage that doesn't fall in this category, it would be covered by a different insurance policy.

Most commercial property policies have the following exclusions

• General wear and tear
• Equipment breakdown
• Flood damage
• Earthquake damage
• Commercial vehicles

Fortunately, you can receive coverage for all of these gaps through additional business insurance policies. Your New Jersey independent insurance agent can help you get set up with a comprehensive business insurance package. 

Who Needs Commercial Property Insurance in New Jersey?

Almost every business that owns property needs a commercial property insurance policy, according to insurance expert Paul Martin. "If a business doesn't have a location or a building, they still need commercial property insurance but not as much as someone who has structures," said Martin.

Since commercial property insurance protects more than just your office building, nearly every business can benefit from this coverage. 

"Even if you rent real estate, you need this protection," added Martin. For businesses that rent or lease their buildings, the lease should explain what your responsibility is in regards to insurance. However, whether you're responsible for the structure itself, insuring personal assets and inventory always falls on the business owner, not the building owner.

How Is Commercial Property Insurance Calculated in New Jersey?

Insurance companies consider a number of factors when calculating commercial property insurance. Contrary to popular belief, commercial property insurance is not calculated by the square footage of the building.  

Common factors when calculating commercial property insurance

• Location: The closer your business is located to a fire department, and the potential risks for severe weather and fire, will impact costs. Businesses located close to the ocean will also have higher premiums.
• Construction type: Commercial property insurance has six construction types, with the most expensive being wood because it can burn the easiest. 
• Sprinklers: Having sprinklers installed can lower your premiums.
• Value of the building: Insurance provides coverage based on the replacement cost of your property. The more expensive the building and property, the more expensive coverage will be.
• Occupancy: Carriers will consider what you're doing inside the building and how many people are working.
• What's next door: Businesses located next door to a hazardous business are at more risk of filing a claim.
• Theft risk: Every city has a theft risk rating that insurance companies use to determine how likely your business is to be robbed.

A New Jersey independent insurance agent can help you understand how your commercial property insurance policy will be calculated and provide quotes for coverage.

How Much Does Commercial Property Insurance Cost in New Jersey?

Since every business is different, there's no exact price on the cost of commercial property insurance. However, small to medium businesses can typically save money by purchasing a New Jersey business owners policy (BOP).

This is a type of business insurance that combines general liability insurance, property insurance, and business interruption insurance in one affordable policy. Ask your independent insurance agent if a BOP will work for you. 

Does Commercial General Liability Insurance Cover Property Damage?

A commercial general liability policy will cover you should you cause property damage to a third party. If you run an HVAC business and an employee is working at a customer's house and accidentally puts a hole in the wall, your general liability insurance will help pay for the damage.

Commercial general liability policies also help pay for third-party bodily injuries that take place on your property or as a result of a customer using your products.

How Can a New Jersey Independent Insurance Agent Help?

Business insurance comes in many shapes and sizes, and a New Jersey independent insurance agent offers you help free of charge. Agents know the right questions to ask so they can shop affordable quotes for your commercial property insurance policy.

Agents have your back when you need it. Should you have to file a claim, they're there to assist you throughout that process as well. Get started by finding an independent insurance agent onTrustedChoice.com today.