Insurance for a Small Business
1/27/2012 10:00:00 AM
The owners of small businesses in New Jersey often purchase Business Owners Policies (BOPs) as the major part of NJ business insurance for their enterprises. A BOP combines a number of common small business insurance products in a package. BOPs can be tailored to suit the needs of individual businesses and typically provide protection for property, liability and business income.
The property portion of the BOP covers assets like the business premises, business equipment and inventory items for the risk of losses because of perils such as fire, theft and weather extremes. Business income (sometimes called business interruption) coverage compensates for income lost if business activities are interrupted or curtailed because of an insured peril. Liability insurance covers the risk of lawsuits filed by clients or customers.
The various components of BOPs cover most of the basic insurance needs of small businesses in a convenient package; businesses that are exposed to other risks may need additional protection such as auto insurance or workers’ compensation insurance. Other specialized insurance products that suit the needs of some small businesses include completed operations insurance, business data insurance and employee dishonesty coverage.
A Business Owners Policy provides basic protection for some of the most common business risks that small businesses face. The owner of a small business in New Jersey should look at all of the business risks faced by the enterprise and if necessary purchase additional types of NJ business insurance coverage that are outside the scope of a BOP.
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The property portion of the BOP covers assets like the business premises, business equipment and inventory items for the risk of losses because of perils such as fire, theft and weather extremes. Business income (sometimes called business interruption) coverage compensates for income lost if business activities are interrupted or curtailed because of an insured peril. Liability insurance covers the risk of lawsuits filed by clients or customers.
The various components of BOPs cover most of the basic insurance needs of small businesses in a convenient package; businesses that are exposed to other risks may need additional protection such as auto insurance or workers’ compensation insurance. Other specialized insurance products that suit the needs of some small businesses include completed operations insurance, business data insurance and employee dishonesty coverage.
A Business Owners Policy provides basic protection for some of the most common business risks that small businesses face. The owner of a small business in New Jersey should look at all of the business risks faced by the enterprise and if necessary purchase additional types of NJ business insurance coverage that are outside the scope of a BOP.
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