New Jersey Commercial Property Insurance

How to connect with a local professional

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.


If you own a commercial property, adequate protection is essential. As of 2019, New Jersey had 5.33 million square feet of industrial property in one city alone. Whether you own a retail shop or a forklift, commercial property insurance can help.

An independent insurance agent has access to several markets, giving you options on coverage and more. When you work with a local agent, you can find affordable rates. Connect with a licensed expert to start saving today.

What Does Commercial Property Insurance Cover?

Your New Jersey commercial property insurance will help cover multiple items. Coverage comes in many different forms and may not be what you expected. Take a look at what is covered under a commercial property policy in New Jersey:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be based on actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to replace or repair your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

If you have any inventory, some policies could include this as covered property. There may be coverage for business papers and documents, depending on the carrier. You might also see coverage for customer property while on the premises.

Who Needs Commercial Property Insurance?

Many in New Jersey may need commercial property protection. It can come in more forms than just a structure. Take a look at the list below of who may need commercial property insurance:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

When a claim occurs, you'll be responsible financially without proper business insurance. Things like judgments and even bankruptcy can leave you penniless. To avoid financial ruin, consider working with a professional.

Commercial Property Insurance Cost

The cost of your business insurance will vary, no matter where you live. Carriers use specific criteria to rate your policies. Check out the risk factors insurance companies use in New Jersey:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

Your rates can be impacted by inside and outside factors. Your personal data is used and can be improved to get a better premium. Things like the weather won't be in your control.

Top 5 weather-related risks in New Jersey:

  1. Severe storms and lightning damage
  2. Hurricanes and tropical storms
  3. Flooding and water damage
  4. Heavy snow
  5. Burglary and other property crimes

How Much Commercial Property Insurance Do I Need?

In 2019, New Jersey paid out $13,470,081,000 in commercial claims. Some of those were property losses. While you won't know how much coverage you need until you get quotes, you can still see how it's covered. Take a look at the different types of coverage given to commercial property owners:

  • Replacement cost: This will pay in full for your commercial property's current value at the time of loss. When you have a claim, it will restore or replace your property to a like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This falls between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Does Commercial General Liability Insurance Cover Property Damage?

Similar to your commercial auto policy, general liability is separate from commercial property insurance. While you can put the two coverages together on one package, they will still be different coverages. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together in one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a New Jersey Independent Agent Can Help

In New Jersey, commercial property insurance can determine whether you experience financial ruin or not. If you are without proper protection, you could be putting your future at risk. Business insurance can be confusing and deserves the help of a licensed professional.

An independent insurance agent can access several markets, giving you options on policy and price. Since they do the shopping for you, there's nothing to lose. Connect with a local expert on TrustedChoice to begin.

Share this page on Twitter Share this page on Facebook Share this page on LinkedIn