Whether you own a boutique clothing store or run a consulting firm, having the right small business insurance in New Jersey is necessary. You’ll want to pick your coverage based on the size of your business and your industry. Here are some common types of small business insurance you might need.

New Jersey General Liability Insurance

General liability insurance covers claims of accidental bodily injuries and property damage to others. It pays for your legal costs, including judgments and settlements. It also covers problems such as claims of advertising injury, reputational harm and copyright infringement.

New Jersey Professional Liability Insurance

Professional liability insurance covers claims that your small business made a professional mistake, such as giving bad advice, misrepresentation and negligence. This type of insurance is also known as errors & omissions insurance.

New Jersey Workers Compensation Insurance

Workers’ compensation insurance covers your employees if they suffer an illness or injury due to work-related tasks. It can pay for expenses such as lost wages, medical bills and disability benefits. New Jersey requires all business owners with employees to carry workers’ compensation insurance, even if you only employ one person.

Other Types of New Jersey Business Insurance

It’s important to consider additional types of small business insurance to cover industry-specific risks. For example, if you use a truck for work-related tasks, you’ll need commercial auto insurance.

Business owners like you may find purchasing a business owner policy (BOP) is a good starting point since it bundles general liability insurance, commercial property insurance and business interruption coverage into one policy. It’s typically less expensive to get a BOP rather than buying each type of coverage on its own.

In addition to general liability, here’s what a BOP covers:

• Commercial property insurance: This covers your small business’s property, such as your building and inventory, against problems like fire, theft and severe weather. Commercial property insurance is also called business property insurance.
• Business interruption insurance: If an incident covered by your policy, such as a fire, prevents you from opening, business interruption insurance can cover your lost income. It can also help pay for moving costs if a short-term relocation is necessary.

Here are some other coverages you can add to your BOP.

• Builder’s risk insurance: This insurance covers buildings and other structures while under construction. Builder’s risk insurance is also known as “course of construction insurance.”
• Commercial auto insurance: Since personal auto insurance policies don’t cover business vehicles, you’ll need to buy commercial auto insurance if you use a vehicle for work purposes.
• Commercial umbrella insurance: If a large claim exhausts your liability coverage limits, commercial umbrella insurance kicks in. For example, if your general liability policy covers up to $1 million and you face a $1.25 million lawsuit, your commercial umbrella insurance can cover the extra $250,000.
• Cyber liability insurance: Storing your clients’ sensitive information, such as credit card and Social Security numbers, can make you a target for cyber attacks. Cyber liability insurance can cover related expenses such as legal fees and data recovery if your business falls victim to a data breach or online crime.
• Directors & officers insurance: If one of your company’s higher-ups (directors, officers, or other decision-makers) makes a decision that results in a lawsuit, directors and officers insurance can cover their legal expenses.
• Inland marine insurance: If your business moves materials, equipment, inventory, or other property from one location to another, inland marine insurance can cover the costs if items are damaged or stolen.
• Medical malpractice insurance: This provides coverage for claims involving patient injury or death, as well as mistakes with medications. If you are a healthcare provider, including nurses and dentists, you’ll need medical malpractice insurance.
• Product liability insurance: If your company sells, distributes or manufactures products or goods, product liability insurance can cover costs resulting from product injury or property damage claims.
• Technology errors and omission insurance: This coverage pays for legal and related costs resulting from customer claims against a small technology business. Tech-centric companies such as computer consultants, IT contractors and website developers can benefit from this type of insurance.