How Business Insurance in NJ Protects your Company against Liabilities
Dan Levenson August 05, 2014
In protecting your business, insurance is the place to start. There are various types of business insurance in NJ, but sufficient coverage against the most common liabilities should be a priority. Attorney fees, court costs, settlement or judgment payments, and other expenses can easily add up to hundreds of thousands or even millions of dollars. The benefits offered by insurance companies could save your business by shouldering these costs fully or partially.
This article outlines the two important policies that small businesses should own:
Commercial General Liability
Investopedia financial writer Pooja Dave discusses the importance of commercial general liability insurance.
“If you run a business, the next customer entering your office door could be the next plaintiff in a lawsuit against your business. As consumers become increasingly aware of their legal rights, there has been a phenomenal increase in lawsuits. You cannot avoid this risk, but at least you can transfer this risk to your insurer through commercial general liability insurance (CGL).
A standard commercial general liability policy (also known as comprehensive general liability insurance) provides insurance coverage for lawsuits arising from injury to employees and public, property damage caused by an employee and injuries suffered by the negligent action of employees. The policy may also cover infringement on intellectual property, slander, libel, contractual liability, tenant liability and employment practices liability.”
Overall, this type of policy is a protection against costly lawsuits that are grounded on the company’s negligence. For instance, a customer that gets physically harmed or becomes infected with a contagious disease in your store may decide to file a legal complaint against you. The owner of the building you’re renting may also sue you for destroying his/her property in a fire accident. These and other cases can be covered under your CGL insurance.
Otherwise known as errors and omissions (E&O) policies, professional liability insurance protects you in cases where the lawsuit involves your services. Your customer may complain that you were negligent or inadequate in performing your duties. Law firms, architectural or engineering companies, financial advisors, and other industries that collect a fee for their service generally need this coverage.
Determining which policies and amounts are suitable may be challenging without the guidance of a licensed broker. Consulting insurance companies in NJ like InsureYourCompany.com can help you get enough information on your options and acquire sufficient protection for your business.
(Source: Cover Your Company With Liability Insurance, Investopedia)