What Is (And Isn’t) Protected Under Business Liability Insurance?
Business Liability Insurance covers the basic risks associated with conducting business. Liability coverage refers to general items and not specific to unique business activities. Every business needs coverage but it is equally necessary to understand what coverage each plan offers and whether it is enough for your specific industry. Your Lyndhurst NJ insurance agent will be invaluable in determining the individual needs of your business. Not having the right kind of coverage, or lack of coverage may leave your business vulnerable to lawsuits and potential bankruptcy.
What Is Covered By A General Business Insurance Policy?
A general business insurance policy covers your business, your employees and yourself from lawsuits involving the business. Whether your business is being sued for an injury sustained in your place of business, caused by an employee or as a result of your product or service, Business Liability Insurance will cover it. Business Liability Insurance can also cover things like copyright infringement.
Business liability insurance helps to mitigate the risk of losing money, or your business, due to legal action, whether that be from personal injury, property damage or intellectual damages. However, as with all other policy types, Business Liability Insurance has caps that may not cover the entire amount due. This is why it is important to have a risk assessment performed prior to choosing an insurance policy.
What Is Not Covered By Your Business Liability Insurance Policy?
A common misconception is that General Business Liability Insurance covers employees injured on the job… it doesn’t. New Jersey law requires business owners to have Workers Compensation coverage. Additionally, professional errors such as negligence, malpractice or misrepresentation will not be covered by a general Business Liability Insurance policy. Lastly, events such as car accidents, intentional acts and product failures that would be typically covered by a warranty are not covered by general business liability insurance. As a result, you may want additional coverage for any of the items not covered by your policy.
In addition to circumstance-specific policies like Workers Compensation and Car Insurance, it is important to evaluate the potential costs of damages following an accident. Business Umbrella Insurance is a policy that helps to pay any leftover amount in a lawsuit that is not covered by Business Liability, Workers Comp or Commercial Auto Insurance. This extra coverage helps to prevent major loses and even bankruptcy in the event of a large, substantial insurance claim.
Additional Insurance Coverage For Your Business May Include:
- Automobile Insurance
- Equipment Breakdown Coverage
- Business Interruption Insurance
- Electronic Data Loss Insurance
- Data Breach Coverage
- Professional Liability Coverage
Business owners should have a solid understanding of what is included and not included with insurance policies. An experienced NJ insurance agent is instrumental in ensuring that you have the information and the coverage your business needs to be protected. Furthermore, take the time to evaluate your insurance annually. Your business changes over time, ensure your coverage is keeping up with these changes.
Schedule A Meeting With Your NJ Insurance Agent Today
Contact our team at Bogle Agency Insurance today and make an appointment to evaluate your New Jersey business insurance needs. We welcome the opportunity to look at your current policies and determine whether there are any holes. Let our knowledge and experience serve as your guide to New Jersey business insurance, helping you understand what is protected under business liability insurance as well as what isn’t.