In New Jersey, $13,470,081,000 in commercial insurance claims were paid in 2019 alone. If you run a company, there are some things you need to know. A business owners policy can protect you from all the what-ifs.
When you want the best coverage and rates in town, an independent insurance agent can help. They work with several carriers so that you have options. Connect with a local expert today.
What Is a Business Owners Policy?
When you own a business in New Jersey, adequate protection is necessary. You'll want to protect your assets and income. Check out the policy that can get you there:
- Business owners policy (BOP): This will include liability coverage for bodily injury and property damage. Any business property will be included for replacement and repair in this policy.
A BOP is used for small business owners with a gross annual income not exceeding a certain amount. It will have several ancillary coverages automatically included for things like identity theft and important documents.
Business Owners Policy Coverages
Each carrier is different in what they offer on a BOP. Most policies will come with standard coverages. Check out what a BOP in New Jersey will include:
- General liability insurance: Pays for bodily injury or property damage claims where you and your employees are responsible.
- Business interruption: This will pay for regular business expenses when you are temporarily shut down due to a covered loss.
- Commercial property insurance: Pays for damage to the building, equipment, and inventory from a covered loss.
- Crime insurance: Pays for a claim involving forgery, fraud, or theft to your company.
Every policy will come with its own flavor of ancillary coverages. Some will include equipment breakdown, cyber liability, and more. Check with your carriers on what they have to offer.
What Is the Average Cost of a Business Owners Policy?
Your New Jersey business insurance costs will be different from anyone else's. That's because your company is unique and is rated individually. Here are some factors carriers use to determine your BOP premium:
- Your business address
- How long you've been in business
- Your gross annual sales
- The type of industry you're in
- If you have any employees
- Business property details
- Prior claims
- Your insurance score
While you won't know your exact pricing until you run quotes, at least you'll know what the carriers use. BOP insurance is a kind of catch-all policy and will cover many things in one place. To get competitive quotes, use a professional.
Business Owners Policy vs. Commercial Package Policy
When you're running a New Jersey business, how do you know which policy is right for you? There are a few options when it comes to commercial insurance. It is important to be aware of the difference between the main two:
- BOP: A BOP is plug and play. It has a pretty rigid template when it comes to coverage offerings. There is not much flexibility in the limits, and the endorsements are as-is. A BOP truly is for small business owners.
- Commercial package policy: A commercial package policy, or CPP, is more robust. It is designed to tailor coverages exactly how your business needs them. A CPP is usually used for mid-sized to large companies. You can add and remove coverages as they pertain to your operation. It is a more flexible option for some business owners.
If you want to know which one your business will need, it's best to consult with a licensed adviser. Neither is wrong, but some operations will fit better under a CPP. In contrast, others will be best insured with a BOP.
Business Owners Policy vs. General Liability
In New Jersey, there are 884,049 small businesses. If you own one of them, you may need a more comprehensive policy than stand-alone general liability. As your business grows, so may you grow out of monoline coverage. Take a look at the difference between a BOP and general liability policy:
- BOP: A BOP provides coverage for your property, business income, and more. It includes general liability in addition to the many other coverage options.
- General liability: This policy is on its own. It will give you liability coverage for bodily injury, property damage, or slander. Anything else will have to be added in a separate policy.
How to Find a New Jersey Independent Agent
When you're searching for the perfect business owners policy in New Jersey, consider using a professional. While you know how to run a business, insurance could be confusing. There are many options to choose from, and knowing which ones your business needs can be tricky.
Fortunately, an independent insurance agent can help. They have access to several carriers, giving you options. Connect with a local expert on TrustedChoice to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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