What Does Small Business Insurance Cover in New Jersey?

Whether you own a hair salon or a bakery, small businesses of all kinds face many of the same risks and need adequate protection. While your business undoubtedly has its own set of unique perils, many hazards like natural disasters and theft are pretty standard across the board. Fortunately a New Jersey independent insurance agent can get you set up with the right small business insurance for your specific needs. But first, here’s a guide to small business insurance.

What Is Small Business Insurance?

No matter where your company is based, small business insurance is designed to protect owners from financial losses relating to common issues like property damage, lawsuits, theft, natural disasters, and employee injury/illness. Essentially, the insurance company agrees to cover financial losses relating to specific listed perils under the policy. Small business insurance is set up to protect owners from losing their business and/or going bankrupt should disaster strike.

What Does Small Business Insurance Cover in New Jersey?

While your particular small business will have coverage needs specifically tailored to its niche, there are several types of protection needed by pretty much all owners. Small business insurance packages in New Jersey all typically include the following main coverages at their core:

• General liability: This coverage protects your business against property damage or injury claims made by a third party. 
• Workers’ compensation: If your employees become ill, get injured, or die from a work-related incident, this aspect of the insurance will cover the financial ramifications. This coverage is mandatory in New Jersey. 
• Property Insurance: Covers loss of or damage to your physical property including your business’s office or building and often any equipment and tools stored within. Protected mishaps include fires, storms, and more.
• Commercial/business auto: Provides protection for any company vehicles against things like theft, vandalism, and damage from natural disasters.

Optional add-ons to small business insurance packages in New Jersey may include some or all of the following coverages:

• Employment practices liability: Covers fees for lawyers and other financial ramifications if any of your employees are involved in harassment cases against coworkers or third parties.
• Cyber risk & privacy liability: Covers the loss/theft of customers’ sensitive data including credit card numbers and more. This coverage can also save your business in the event a deposit or money transfer is intercepted by cybercriminals.
• Professional liability: Also known as "errors and omissions insurance," this coverage protects against claims made by clients who have suffered financial loss due to the work they've hired you for. This coverage is crucial for those who offer advice or consulting as part of their services.
• Key employee insurance: This coverage reimburses a small business in the event an important or “key” employee dies or becomes disabled, causing a loss of revenue or financial hit to the company in their absence.
• Umbrella insurance: Covers extensive liability issues that surpass the limits provided in standard small business insurance policies. Once an underlying liability coverage’s limit has been exhausted, umbrella insurance kicks in to provide the rest of the necessary reimbursement. Liability limits on umbrella policies typically extend up to $1 million.

Working together with a New Jersey independent insurance agent is a great way to get your small business set up with the right amount of coverage in every area you may encounter risks. They’ll be able to answer any questions you may have about what aspects of your business need protection, so be prepared to discuss any specific operations that take place and services offered.

What Does Small Business Insurance Not Cover in New Jersey?

Though small business insurance covers a lot of necessary components for their owners, it doesn’t cover just anything. The following are examples of commonly excluded perils under small business insurance policies in New Jersey:

• Employee dishonesty
• General wear and tear of equipment, etc.
• Routine maintenance fees
• Earthquake damage
• Nuclear reaction and war
• Power failure (unless it causes damage to computer systems)
• Robbery
• Pollution
• Temperature/humidity changes
• Inexplicably lost inventory
• Flood damage*

*In a coastal state like New Jersey that’s prone to flooding, you’ll most likely want to purchase additional flood coverage for your small business, or you may even be required to have it by your mortgage lender. Your New Jersey independent insurance agent can give you more information about finding coverage.

What Are the Benefits of Small Business Insurance in New Jersey?

Small business insurance provides protection to owners in New Jersey in a number of ways. Beyond your physical assets and building, many components of your small business stand to be destroyed or otherwise harmed by common threats. There are three major benefits to having small business insurance:

• Protection against legal trouble: A costly and damaging event like a fire could send a business into the red without the proper coverage. If the business was unable to pay off their loans, vendors, or employees, they could face serious legal consequences. Small business insurance helps prevent these ugly matters from surfacing.
• Protection against a damaged reputation: Huge incidents affecting businesses of all kinds often end up in the media. When it comes to customers getting ill or injured or having their property damaged, word about their upset could spread quickly and even turn from gossip into media coverage. Having the right small business insurance can help prevent your reputation from going up in flames.
• Protection against bankruptcy: Imagine a severe storm or other terrible incident like an airplane crash that literally wipes out your entire office or storefront. Without the right insurance, the business owner could easily be forced into bankruptcy. Small business insurance helps businesses stay open, stay afloat, or rebuild following massive destruction.

Your New Jersey independent insurance agent can help you review your small business insurance policy to answer any remaining questions about your coverage. They’ll also be able to help you figure out whether you’ve got enough coverage, or if you should purchase more.

How Much Does Small Business Insurance Cost in New Jersey?

Well, it depends on the type of small business you run and other factors like its size and annual revenue, as well as your specific location and the danger level of operations involved. That being said, a tiny surf shop might only pay $300 per month, while a much riskier business like an aquarium that allows you to swim with sharks might pay closer to $3,000 per month. A New Jersey independent insurance agent can help find more exact quotes for you.

Why Work with a New Jersey Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

New Jersey independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting, so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your New Jersey agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.