General Liability Insurance covers business risks such as customer property damage, advertising injury, and customer injury. Through this, your business will be protected from the high costs of lawsuits and you can qualify for leases and contracts.
Why Businesses in New Jersey Require General Liability Insurance
Many companies need this type of insurance, especially if you own or rent an office or commercial space. General liability insurance is included as a requirement in many client contracts. Small businesses that work directly with their customers and clients typically benefit from commercial general liability insurance (GSL policy). This is highly beneficial in that you become financially stable in the event you are sued by a competitor or customer.
What Does General Liability Insurance Cover?
General Liability Insurance provides coverage for:
- Common liability claims from third parties
- Legal defence costs from a lawsuit over bodily injuries, property damages, or advertising
- Commercial Auto
- Professional Liability
- Worker’s Compensation
Commercial Auto – liability and physical damage coverage for vehicles used for business such as vans, trucks, cars, SUVS, and Trailers. These commercial vehicles have a policy separate from personal vehicles because they are generally exposed to greater risks. Commercial auto insurance does not only apply to industrial vehicles such as dump trucks or semis. Businesses need vehicles to run errands, transport tools and bring clients to and from their destinations.
Professional Liability – a type of coverage that is essential in protecting business professionals which include accountants, consultants, and attorneys from claims relating to negligence or misconduct. This is often referred to as errors & omissions (E&O) insurance. Specific fields require professional liability because sometimes mistakes are made within their services causing indirect, financial loss to their clients. Professional liability insurance covers claims of actual or alleged negligence that occurs through professional services that are provided. These claims can include an omission, giving wrong advice, or failure to deliver a service. The coverage includes damages and defence costs whether a mistake was made or not.
Workers Compensation – worker’s comp covers a number of lost wages for employees who become injured or get sick on the job and helps provide coverage for medical expenses. Each state has a set of laws for worker’s compensation that employers must abide by. These types of regulations are set to help ensure that coverage for the cost of work-related injuries or diseases is being provided by employers regardless of negligence by the employee. An employee can only receive benefits if the injuries are work-related.
Worker’s comp insurance covers injuries caused by:
- Slipping on oily or wet surfaces
- Injuries brought upon by the result of fires or explosions
- Lifting heavy equipment
If an employee gets injured on a day off or if the injury involves something that does not fall within the scope of their employment, Worker’s compensation will not cover them for their injuries. Worker’s comp is required by law in almost every state. Some exemptions exist which is why it is best to check and make sure that coverage is mandatory for your business. It could be a huge financial risk if you do not consider worker’s comp for your business as you could be fined for breaking the law or even face a lawsuit from an injured employee.
How Much Does New Jersey General Liability Insurance Cost?
The cost of General Liability Insurance in NJ depends on:
- Coverage Amount
- Industry and risk factors
- Number of employees
The cost of General Liability insurance in New Jersey is an average of $42 monthly based on the median cost of policies.