When you are a business owner, you have many responsibilities. Not only must you budget operational costs and marketing campaigns, you must set enough aside to build a custom and comprehensive commercial insurance NJ policy. Commercial insurance is designed to cover practically every conceivable risk your business will face during operations. While you may carry a business owner’s package policy or property insurance that is required by your commercial property manager, it is important to know what you are carrying and why you need to carry it. Below is an explanation of some of the most common types of commercial insurance policies available to businesses serving any industry.

A Business Owners Package, most commonly referred to as a BOP policy, is the most popular type of commercial insurance NJ bound in the state. BOP policies are designed to cover small to medium-sized businesses with low risks. This insurance policy, unlike others available, is a single policy that combines both property insurance and general liability insurance in one packaged policy. A package policy can be tailored to meet the needs of businesses who are renting properties or who own the premises in which they conduct business.

General liability insurance, which can be purchased in a BOP policy or separately, is designed to cover common liability risks that commercial businesses face. If your business causes injuries or property damage to a third party because of negligence, you could face financially damaging lawsuits. General liability will pay for claims arising from company negligence and legal defense costs to defend you in civil court. General liability also covers other claims such as libel, slander, and false advertising.

Mistakes made during the course of business that cause financial harm to clients and third parties are specifically excluded from a general liability commercial insurance NJ policy. To cover these gaps in coverage, individuals who provide services may need to invest in professional liability insurance. Professional liability insurance, also referred to as errors and omissions insurance, is designed to cover errors that are made during the course of a contract or service. If your faulty performance causes financial harm, you could face a lawsuit. Professional liability insurance will pay for claims, defense costs, settlements and judgments arising from a covered negligent act.

When you are building your commercial insurance NJ portfolio, you must build a policy that is comprehensive in coverage. Purchasing insurance could potentially save your business in the event you have a claim that could cost thousands or millions. Consult a licensed insurance agents to discuss common risks associated with your business, and bind coverage that is tailored to your industry. With the right business owners package policy and specialized packages, your business and personal assets will stay protected.

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