Business Insurance

Business Insurance NJ

If you are a business owner, business insurance is one of the least expensive and most cost-effective ways to protect your business assets and can even help protect your personal assets in the event of a lawsuit aimed at your business.  Business insurance, like all insurance programs, requires you to make payments to an insurance company in exchange for payment in the event that a covered event occurs and causes damages that are covered, as well.  As a result, some people are hesitant to buy insurance coverage because the odds are that you will not need to make any claims. However, the cost of insurance compared to the amount of coverage makes it clear that purchasing business insurance is a smart idea for any business owner.   Moreover, depending on the type of business you have, it may be prudent to examine multiple different types of policies to see what combination of policies yields the best coverage.  A comprehensive policy, which is often referred to as a Business Owner’s Policy can combine several different types at coverage, generally at a reduced premium than if each type of coverage was purchased individually.  However, a Business Owner’s Policy is not appropriate for all clients in all circumstances.

The first thing to do when considering insurance is to examine your legal obligations.  Small businesses may not be required to purchase business insurance, but a small business with employees may be required to have insurance for certain purposes.  For example, drivers are required to have insurance and company-owned vehicles would need to be covered under an insurance policy.  In addition, employers may need to pay for workers’ compensation insurance and unemployment insurance.  In some states and territories, including California, Hawaii, New Jersey, New York, and Puerto Rico, employers are required to pay for disability insurance.  Understanding your legal obligations is a good first step in determining your insurance needs.

Next, you should assess your risk.  What type of business do you own and what are the risks associated with that business?  You want to ensure adequate coverage for all aspects of your business.  What is the likelihood that you would be sued and the possible recover in the event of a lawsuit?  You then need to assess those risks against insurance premiums and deductibles, choosing the appropriate combination of premium and deductible to protect your interests. Furthermore, it is important to reassess insurance needs on an annual basis, as business growth or changing business conditions can greatly impact your insurance needs.


© 2017 All rights reserved. Capstone Insurance & Financial Services
1386 Route 9 | Toms River, NJ 08755 | (732) 286-9600


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