Options for Business Liability Insurance in New Jersey

While almost all business owners in the Garden State understand that they need to carry some type of business liability insurance in New Jersey, many continue to underestimate their exposure in relation to the sort of risks they face on a daily basis. According to a report from the US Chamber of Commerce, more than one in three businesses are hit with a lawsuit, with over 70 percent of these companies suffering financial hardship as a result of not having adequate coverage in place.

Many products or services may cause harm to consumers

Exposures are everywhere. A wet and slippery floor in a supermarket, oily floors in auto repair garages, packaging that is difficult to open and results in cuts and lacerations to consumers — these are just a few examples of liability issues often overlooked by companies, owners, and managers that wait until it is too late and an accident or injury leads to litigation.

Even a company with seemingly limited physical perils may benefit from this coverage, which is available to businesses in one or more policies:

  • General Liability protects companies from claims related to injuries and damages to other people’s property
  • Product Liability protects against defective products and services that cause harm
  • Professional Liability (Errors and Omissions insurance) will cover unintentional mistakes made by businesses that provide services
  • Employment Practices Liability offers protection against an employee’s claim of unfair treatment or discrimination
  • Directors and Officers Liability helps protect company directors and officers from lawsuits claiming they managed the business irresponsibly

The idea is to choose the right coverage for your business. Financial lenders and investors may require certain entities to maintain liability, business interruption as well as other types of insurance to help protect their investments. Some landlords, government agencies and large corporations also require that tenants and vendors carry liability coverage in a contract that includes the specific amount and type of coverage needed.

You may also be required to carry liability protection specific to your profession, such as contractors or physicians. If you or an employee accidentally hurts someone or destroys their belongings during the course of work, business liability insurance in New Jersey shields against lawsuits pertaining to these matters. Depending on your business, this may be the most important policy that you purchase.



photo credit: 88 Wood Street (license)