Commercial insurance is a worthwhile investment that protects your Fords, NJ business when the unexpected occurs. Commercial insurance comes into play when faced with liability claims, employees injuries, theft or damage to commercial property, and when sued for negligence for the professional advice you give. While commercial insurance is superb, have you ever thought about whether you carry a sufficient amount of coverage? If you are not sure, At Five Star Insurance Agency is here to guide you on the amount of commercial insurance required for your business.
Meet the required minimums first
The first step is to meet the legal requirements. In New Jersey, all businesses must invest in worker’s comp insurance if they have one or more employees. Besides, you must purchase commercial auto insurance with minimum liability coverages if you have business vehicles.
Plus, if you have a business loan, your lender might have business insurance requirements. For instance, if a financial institution has given you a mortgage for your business premises, the minimum property insurance required shouldn’t be less than the outstanding mortgage balance.
How much liability insurance do I need?
Liability insurance isn’t mandatory in New Jersey, but it’s must-have coverage for every business out there. This insurance covers you when accused of damage and injuries by other people. It also covers you when sued. But how much liability coverage do you need?
This question is tricky because you never know the amount of liability claims you will face at a given time. So, after establishing your risk profile, talk to your insurance agent to purchase a sufficient amount. Generally, we advise businesses to consider liability coverage of $1M plus, but the amount can go higher for high-risk businesses.
How much property insurance do I need?
As a rule of thumb, always have coverage sufficient to replace your entire assets in the worst-case scenario.
Learn more about commercial insurance in Fords, NJ
Still not sure whether you are carrying a sufficient amount of commercial insurance? We get it — understanding commercial insurance isn’t an overnight thing. We invite you to contact Five Star Insurance Agency for a no-obligation consultation.