5 Types of Insurance Every NJ Executive Needs to Avoid the Risks

By Dale Newell posted 05-27-2021 05:09 PM

  

Before starting your business in New Jersey, it’s important to understand the regulations and requirements for things like business practices, licensing, and insurance. If you’ve just started, there’s no denying one of the most important things you can do to protect your small business assets is business insurance. But which one?

There is no “one-size-fits-all” when it comes to ensuring your business, just as there are no two businesses alike. The chance is, your business needs will vary depending on a variety of factors, like the industry you operate in, the type of business you run, and trade. It will also be influenced by the location and size of your business and your appetite for risk. A local gym will face different risks and challenges, to say, a tradie, a coffee shop, or a real estate firm. 

However, one thing’s for certain. Finding the right insurance is an essential part of coping with issues that arise in operating your business. And, like it or not – all businesses confront an element of risk on a daily basis, regardless of their industry, size, or location. Speaking of location, you might want to protect your small New Jersey business from financial loss from claims of injury or damage caused to others by you or your employees. Depending on your business type, you might need to look for: 

  1. General Liability Insurance 

The general liability policy can protect against the various risks associated with doing business. From interacting with clients to having an office space, such risks can be both outside and within your control. 

In business, anything can happen. If third parties like customers or clients get injured in your store, or they claim a personal injury from your ads, they could sue you. That’s why you need to compare the latest business insurance quotes and choose one that meets all of your business needs and protect you from third-party claims of: 

  • Bodily injury 
  • Property Damage 
  • Personal and advertising injury

In addition to the general liability coverage, you may also want to protect your business from the risks associated with the specific operations you do, or better said, errors & omissions. In that case, you’d need professional liability coverage that handles costs associated with: 

  • Lawsuits overwork that’s missing or late 
  • Flawed or incomplete work
  • Damages your customer want compensated
  1. Bobtail Insurance/ Non-Trucking Insurance 

If you work as an independent contractor, you will probably need coverage beyond what your hauler offers you. In most cases, if you’re under dispatch, you’re protected by the business insurance your hauler offers. However, when you’re off the clock, that policy is no longer protecting you—a reason why most independent contractors choose to purchase bobtail or non-trucking liability coverage.

While the non-trucking coverage can protect you from unexpected repairs and expenses when driving for personal matters rather than commercial purposes, the bobtail insurance policy applies when, for example, your employee drives home in your truck after dropping off the load.

  1. Management Liability Insurance 

This policy protects your business and the people who manage your business, such as CEOs and Senior Managers, against the risk and exposures of running the company – a liability of mismanagement. The policy covers against acts of misconduct and allegations and legislative violations, including the penalties and statutory fines, breach of duties, defamation, and sexual harassment. It can also protect your company against losses from fraud and theft. 

  1. Cyber Liability Insurance 

If you store sensitive information on your office devices or have a platform for your business, you should think about choosing a Cyber Liability policy. This policy covers your business in the event your platform or website is hijacked and defaced, your client information, or sensitive data is stolen. The costs associated with a data breach can have a considerable impact on your business, not to mention the impact it can have on your brand’s reputation. 

Typically, a cyber liability insurance New Jersey covers: 

  • Assistance with associated legal penalties 
  • Repairs for damaged computer hardware and software 
  • Recovery for stolen data 
  • Recovery of all personal client information and identities
  1. Tax Audit Insurance 

With an upsurge in the number of small business owners experiencing random tax audits by the government, it may be time to consider Tax Audit Insurance for your NJ-based business. Having to deal with audits can be an expensive, time-consuming and stressful event. Not to mention it can often cost you thousands of dollars. A tax audit coverage protects your small business from all the expenses associated with an audit or investigation, like fees from lawyers, accountants, and other advisors. 

NJ Business Insurance Requirements: 

Business liability insurance isn’t mandatory for all companies working in New Jersey. However, general liability and professional liability remain a viable option if you need protection from the various risks mentioned above. You may also find that some regulators require you to have a certain type of insurance in order to operate in NJ, which means those insurance will be mandatory for particular industries or professions. Accountants, healthcare professionals, and even solicitors are required to have professional insurance. 

It’s even possible that you won’t be able to sign business contracts without certain insurance in place. But as we’ve previously mentioned, each situation is unique. The type of New York Jersey business you operate or products you create must determine how much liability coverage you need or if you need one. 

But if your business happens to be a high-risk one, with a high volume of interaction with the public, you should consider applying for business liability coverage. Note that if you operate a home-based business, your renter’s or homeowner’s insurance policy has limited coverage for business loss or liability. 

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