 
Additional Resources
Insurance Agents Leads
LeadsBank.Org
Life Insurance| NJ Term life or whole life policy quotes.
NJ Term life or whole life insurance policies explained and free rate quotes.
|
NJ SMALL BUSINESS INSURANCE
-
- NJPAIP.Com & NJPAIP.Org Free Guide to NJ SMALL
BUSINESS INSURANCE
-
-
- If you own your own New Jersey business or are a partner
in one, you're probably already familiar with risk. Few things in life are
riskier than starting and running your own business. Part of the risk of any
small business is the loss of critical tools and property or liability to
others. Either of which can cause loss of income or even force you to close your
doors.
Large New Jersey companies employ full-time risk managers to keep their
risk-taking to a minimum. But chances are that as a smaller NJ business
operator, you are your company's risk manager, along with its personnel
director, office manager, and possibly the entire staff all rolled into one.
While juggling all the jobs that need to get done to make your New Jersey
business a smooth running and profitable operation, you may already be asking
yourself, "Who has enough time to think about insurance?" You do! Keeping risks
and losses to a minimum is an important part of business success in NJ,
especially for smaller, newer businesses. Take a few minutes now to check your
risk factors, find out your insurance needs and learn the many options available
to you. And remember choosing the right agent is as important as choosing the
right insurance.Commercial
Vehicle Insurance quotes NJCAIP.ORG.
-
NJPAIP.Com�
NJPAIP.Org�
NJCAIP.Org�
NJCarinsurance.Org
AssignedRiskInsurance.Org� have partnered to provide this free informational
guide to assist business owners. This information does not represent the
provisions of any particular policy, but it can serve as a starting point and
guide to a complete package of protection.
Index of
Questions
-
- Yes, because the chance that you could suffer a loss begins with
the first day of business. You can't get help after the fact. If you suffer a
loss and have no insurance or have improper or insufficient coverage, there is
very little, if anything, your insurance agent can do to help you. You must be
prepared for the risks that are inherent in any business and the losses,
sometimes catastrophic, that they can cause.
Also, many states and local jurisdictions require that businesses be insured to
begin operating. And if you rent space for your business, your landlord probably
requires that you be adequately insured as well.
-
Every business has some property. And, when you think about it,
your business is your property. Just like your home and your automobile, your
business needs to be protected from loss, damage and liability. In addition,
your business is your source of income, so you need protection from the
potential loss of that income.
Generally, there are two types of insurance - property and liability. Property
insurance covers damage to or loss of the policyholder's property. And if
somebody sued for damages caused by you or your possessions (other than a
vehicle covered by your insurance policy), the cost of the suit - both defending
it and settling it if necessary - would be covered by your NJ liability
insurance.
Return to Index
-
It can be. Many smaller businesses are now insured under NJ
package policies, know as Business Owner Package Policy that cover the major
property and liability exposures as well as loss of income. A common package
policy used by many NJ smaller businesses is called the Business owners Policy
(BOP).
Generally, these package policies provide the smaller-business owner more
complete coverage at a lower price than separate policies for each type of
insurance needed. Your agent can help you decide which policy or policies are
right for your business. Additional coverage for property, liability or perils
or conditions otherwise excluded (e.g., flood protection) can be purchased as
endorsements to a standard policy or as a separate, second policy called a
difference-in-conditions (DIC) policy.
Because businesses vary, it is impossible to have a standard policy to cover all
contingencies. Also, some businesses, regardless of their size, do not fit the
profile of a standard business owners policy. For example, restaurants,
wholesalers and garages have special liability needs that are not met in the
standard business owners policy. Your insurance agent can advise you of the best
policy (or policies) to protect you and your business.
Return to Index
-
Make sure that you have considered all the property categories
and any insurance coverage that may be warranted:
Buildings and other structures (owned or
leased)
Furniture, equipment and supplies
Inventory
Money and securities
Records of accounts receivable
Improvements and betterments you made to
the premises
Machinery
Boilers
Data processing equipment and media
(including computers)
Valuable papers, books and documents
Mobile property such as automobiles, trucks
and construction equipment
Satellite dishes
Signs, fences, and other outdoor property
not attached to a building
Intangible property (good will, trademarks,
etc.)
Leased equipment
-
-
To establish the amount of insurance
you need on each, your insurance agent can help you review the types of property
you own and their uses. Some of these items are covered in the basic policies.
For others, coverage can be added by an endorsement, or rider. And some, like
money and securities, may not be covered by a standard commercial policy and may
require a second, separate policy.
Return to Index
The best thing to do is to take a complete inventory of all your
business property, determine their value and decide if each is worth insuring.
Then check to see that the items on the inventory list are included in the basic
business property policy and covered for the correct amount. If not, ask your
agent about the cost of purchasing additional coverage to meet your needs.
You also need to consider your business situation. Are you planning a major
expansion? Does your inventory have a decidedly peak season (like a toy store in
December)? Or does it fluctuate throughout the year (like a clothing store)? Is
your liability limit high enough in light of the new job contract you just
signed? Business policies are designed to be added to or subtracted from to meet
your needs. Be sure to discuss changes to your business with your agent so that
he or she can be sure your policy still provides adequate coverage.
Some common additional coverages for business property include (although this
list is by no means all-inclusive):
Boiler and Machinery Insurance
Even if you do not own a boiler, you may need this coverage. The
term "boiler and machinery insurance" is gradually being replaced with terms
such as "equipment breakdown" or "mechanical breakdown" coverage. This insurance
provides coverage against the sudden and accidental breakdown of boilers,
machinery or equipment, including computer systems and telephones/communication
systems. Coverage usually includes reimbursement for property damage, expediting
expenses (e.g., express transportation charges), and business interruption
losses.
Builders Risk Coverage
Covers buildings in the course of construction. Depending on the
policy, this coverage can be for either the building's value at the time of loss
or its full value at the time of completion.
Building Ordinance Coverage
Provides coverage when a community has a building ordinance
stating that when a building is damaged to a specified extent (usually 50
percent), it must be completely demolished and rebuilt in accordance with
current building codes rather than repaired. Special attention is required when
establishing the amount of insurance.
Business Interruption Insurance
Covers the loss of earnings as a result of damage or loss of
business property. Reimbursement for salaries, taxes, rents, and other expenses
plus net profits that would have been earned during the period of interruption
can be included.
Commercial Crime Coverages
Covers money and securities, stock and fixtures against theft,
burglary and robbery both on and off the insured premises and from both
employees and outsiders.
Debris Removal Coverage
Covers the cost of removing debris after damage from fire or
other covered peril that requires debris removal before reconstruction of the
damaged building can begin. This is not part of fire insurance coverage and must
be added as an endorsement.
Fidelity Bonds
Covers business owners for losses due to dishonest acts by their
employees.
Glass Coverage
Provides coverage for glass breakage such as store windows and
plate glass on office fronts.
Inland Marine Insurance
Primarily covers property in transit such as from warehouse to
warehouse or warehouse to retail store, as well as other people's property left
on your business premises, such as clothes left at a dry cleaning business or an
employee's personal effects left in the company locker room.
Insurance for Loss of Lease Income or Value
Covers the loss of income when rental property is damaged or
destroyed and the loss of value when the owner of the rental property also used
some of its space for business. If the tenant of the destroyed or damaged
building is forced to rent space elsewhere at a higher cost, this is called loss
of lease value.
Return to Index
- There is no one answer to this because each business is
different. You can consult with your agent on the monetary limits needed to
cover your potential for loss. Obviously, a one-person accounting firm will need
to purchase less insurance than a store with a substantial inventory. But each
will need to make sure that all necessary business property is covered, that the
limits of liability are sufficient to protect the owner and the employees, and
that loss of income is protected.
In addition, each business has unique needs and situations that must be handled.
If the store happens to be located on a flood-prone area, the owner should
invest in
flood Insurance. The accountant may wish to purchase
reconstruction-of-accounts-receivable insurance to cover the loss of accounting
records. The costs of reconstructing those records, money borrowed because of
delayed payments due to the records being lost, and lost payments from those
clients whose records cannot be reconstructed are all covered.
NJ Liability protection also will vary from business to business. A retail
business is more at risk for potential suits than a business that is not open to
the public. Also, in some states, courts tend to respond more positively to
lawsuits, increasing both the likelihood of successful lawsuits and the amount
of damages awarded. In today's lawsuit-conscious society, higher liability
limits are extremely important and relatively inexpensive. Your agent can help
you decide how much coverage is needed for your particular business.
Return to Index
-
|
Property insurance can be purchased on the basis of the
property's actual value, on its replacement cost, or on an agreed amount. The
differences between the three are:
Actual Cash Value
The replacement cost of the item minus depreciation. For
example, a new desk may cost $500. If your 7-year-old desk gets damaged in a
fire, it might have depreciated 50 percent. Therefore, you would be paid $250
for it.
Replacement Coverage
The cost of replacing an item without deducting for
depreciation. So today's cost for a desk of a size and construction similar to
the 7-year-old one damaged by fire would determine the amount of compensation.
If it costs $500 today, that would be the replacement coverage.
Agreed Amount
Art objects, antiques and other unique items are usually insured
at an amount agreed upon when the policy is being written. An appraiser values
the goods to be insured and the business owner and the insurer agree upon an
amount that the insurer will pay if the goods are destroyed due to an covered
peril.
Check your policy. If you prefer replacement coverage and do not
already have it, this coverage can be added to your policy. Inflation-guard
coverage, which automatically increases your insurance amount a certain
percentage, protects against rising construction costs. Your agent can advise
you of the costs involved.
Return to Index
NJ Basic property insurance policies generally cover losses
caused by fire or lightning and the cost of removing property to protect it from
further damage (e.g., removing inventory or equipment from a damaged building so
it won't be stolen). "Extended perils," including windstorm, hail, explosion,
riot and civil commotion, and damage caused by aircraft, automobiles or
vandalism, are usually covered in a standard policy. Other important perils,
often not covered and considered "optional" in almost all standard policies,
include earthquake and flood damage, building collapse, and glass breakage.
Property insurance can be written as either "named peril" policies or so-called
"all risk" policies. A named peril policy provides coverage for those perils
specifically named in the policy. An all risk policy covers loss by any perils
not specifically excluded in the policy. The term "all risk" does not mean that
all perils will be covered and, to avoid confusion, is often replaced with the
term "special form" or "special causes of loss" coverage.
Check with your agent on the perils covered by your policy. If you wish,
additional coverage can be added.
Return to Index
No business can afford to be unprepared for a lawsuit. Liability
insurance protects your business assets when the business is sued for something
the business did (or failed to do) that contributed to injury or property damage
to someone else. Liability coverage extends not only to paying damages but also
to the attorneys' fees and other costs involved in defending against the lawsuit
- whether valid or not.
The standard business owners policy provides liability coverage, as does a
separate policy known as a commercial general liability (CGL) insurance policy.
Generally, commercial liability insurance, whether purchased in a separate
policy or as part of a standard business owners policy, will cover bodily
injury, property damage, personal injury or advertising injury. The medical
expenses of a person or persons (other than employees) injured at the business
or as a direct result of the operations of the business are also covered.
Usually excluded from both types of liability insurance policies are suits by
customers against a business for nonperformance of a contract and by employees
charging wrongful termination or racial or gender discrimination or harassment.
Check with your NJ Insurance Agent about the best liability protection covering
all types of situations that may arise in your business.
Return to Index
Yes, but in addition to covering the vehicles you own for
liability, medical payments, uninsured motorist coverage, comprehensive and
collision, it also covers you when you rent a car and when your employees are
operating their personal cars for your business. Be sure to review your auto
exposures with your agent.
Yes, and in most states there are legal requirements that must
be met, and for which you may be responsible. State laws vary, but most states
require that you carry some form of workers compensation insurance. This
protects the employee and also offers you the business owner a degree of
immunity from lawsuit by an injured employee.
Return to Index
Yes. Whether you have one vehicle or several, you will need a
business automobile policy. Such a policy covers any motor vehicle used in your
business including cars, vans, trucks and trailers pulled by trucks, and offers
coverage if they are damaged or stolen. It also covers liability if the business
vehicle is in an accident and the driver is at fault. This policy is not for
truckers or commercial garages. They have special liabilities and must secure
special policies that deal with their different needs. Businesses that have a
fleet of vehicles will of course have different needs than a business with one
or two, and their policies will reflect these differences.
Return to Index
Whether the business lease is for a building or for equipment,
the agent needs to determine who is responsible for insuring the leased items -
you or the lessor. For leased buildings or building space, there are other
factors to be considered, such as who is responsible for plate glass coverage
and whether your landlord requires tenants to carry minimum amounts of liability
insurance, and the extent of a hold harmless agreement. These and other
situations covered in the lease affect the amount and kinds of insurance you
need.
Return to Index
Yes, if your business transports, stores or uses toxic
materials, you are required by law to have a special environmental liability
policy. If these materials should be discharged accidentally into the water or
leak onto the ground due to a covered peril like fire, the cost of extracting
the pollutant from the business premises is covered up to the dollar amount set
forth in the property section of your policy.
Return to Index
The standard business owners policy contains coverage for loss
due to fire, including coverage for property of others the insured business was
repairing, storing, or otherwise servicing in order to earn money. The coverage
only applies, however, if the business is legally liable. Thus, if lightning
causes the fire, the business is not responsible because lightning is out of the
control of the business owner. There are other policies, called Bailee's
policies, that provide even broader coverage for your customers' possessions. A
Bailee's policy is often useful to help maintain good customer relations.
Shipping companies often carry insurance to cover their losses.
However, the shipping company's insurance may be too low or you may have
difficulty collecting on a claim after signing for the shipment. Therefore,
"property in transit" insurance is available to cover your property being
transported by truck, rail, ship, or other means of shipment. Also, the firm you
hire to transport goods and the contract you sign with them may affect your need
for coverage. Make sure you check with your insurance agent.
Return to Index
Yes, but on a very limited basis. Loss of business property is
usually reimbursed up to $2,500 in the house and up to $250 for business
property damaged or lost away from the premises. Even if your business is a
sideline such as a craft studio, these limits may be too low to cover all the
equipment and materials you have accumulated. It's also important to know that
no business liability coverage is included in a standard homeowners policy. Your
insurance agent can help you ascertain what, if any, additional coverage you
need. This additional coverage may be added to your homeowners policy or found
in a separate commercial policy.
Return to Index
Most business policies include a "coinsurance" clause
stipulating what percentage of the total value of your property must be insured
in order to be fully reimbursed for a loss, even a partial one. (Most losses are
partial.) If you insure for less than that amount, your insurance company may
impose a "coinsurance penalty" on your claim.
Here's how coinsurance works:
Let's say you have a building insured that you believe would cost $100,000 to
replace and a coinsurance penalty in your policy of 80 percent. You insure the
building for $80,000, thinking you have fulfilled the coinsurance clause. A fire
loss causes $60,000 worth of damage, so you submit a claim. Your insurance
company subsequently determines that the replacement cost of the building is
actually $150,000. To determine how much to pay on the claim, the insurer
divides the amount of insurance you purchased ($80,000) by the amount you should
have purchased (80% of $150,000 or $120,000). The result (two-thirds, or
$40,000) is the amount of your claim the insurer will pay.
Thus, even for a partial loss within the monetary limits of your policy, you
will receive only two-thirds of the amount claimed. If the building had been
insured for at least $120,000, the insurer would have reimbursed you for the
full amount of the loss.
You should check with your agent to make sure you have adequate coverage. Adding
an endorsement to the policy that automatically increases policy limits to keep
pace with inflation is a good idea.
Return to Index
As long as you do not alter the products you receive from
manufacturers for resale, you have only a secondary liability. The product
manufacturer is the first liable party. General liability insurance usually
covers this secondary liability, but you should check with your agent to be sure
your business is adequately covered. Recognize, too, that your liability policy
will pay
defense costs, whether or not a judgment is rendered against you.
Return to Index
Employee benefits generally include health insurance (sometimes
including dental and vision benefits), term life insurance, and possibly a
retirement program. Group disability insurance is also available, although
employers and employees opt for this benefit less frequently.
Employers can provide coverage for their employees alone or for the employees
and their families. Cost is usually the determining factor. With the high cost
of health insurance in the United States today, employers are more likely to ask
employees to pay some or all of the costs of health insurance for their families
and sometimes for the employees themselves.
Depending on the size of the group to be insured, the business may serve as the
policyholder for the group's insurance. However, for many small businesses, the
insurer will pool them together in a multiple-employer trust. The trust itself,
rather than any single employer, is the policyholder. This enables smaller
businesses to benefit from the lower premiums and other services enjoyed by
large groups.
Small businesses can also sometimes obtain employee benefit insurance through
their trade or professional association. Your best bet as a small business
operator is to find a way to join a larger pool seeking benefits. Check with
your agent on the options available to you.
Remember that all insurance premiums are based on the risks
involved. The insurance company evaluates the situation to determine the risks -
or potential for losses - and bases its rates on the results. Therefore,
deliberate steps you take to lower your risks not only can help safeguard your
business but also may make you eligible for lower insurance rates. Consider
these steps:
-
Maintain adequate lighting throughout your business premises.
-
Keep electrical wiring, stairways, carpeting, flooring,
elevators, and escalators in good repair.
-
Install a sprinkler system, smoke and fire alarms, and adequate
security devices.
-
Keep only a small amount of cash in the cash register.
-
Keep good records of inventory, accounts receivable, equipment
purchases and the like. Consider keeping a second set of records off-site, such
as with your accountant, insurance agent or at home.
-
Make sure your employees have good driving records.
-
Make sure your employees know how to lift properly and use all
necessary safety equipment, such as goggles, gloves, and respirators.
-
Consider using the services of a risk manager. Such an outside
consultant can advise you of any safety or environmental regulations you may
have overlooked or not been aware of and talk to your employees about safety
practices.
-
You may also wish to raise your deductible where appropriate to
lower your insurance premiums. How high to raise the deductible should be
governed by how much you can afford to pay out of pocket. Be careful not to
raise it so high that you cannot cover it should a loss occur.
-
Finally, make sure your agent is familiar with your business and
the risks inherent in it. He or she should be able to advise you on risk
management techniques and their benefits to both you and the insurer.
Insurance is a heavily regulated industry. Every state has some
sort of Insurance Department, Insurance Administration or State Insurance Agency
that regulates and monitors every insurer operating within the state's borders.
In addition to approving rates, your state's insurance department is involved in
all insurance matters on behalf of private citizens and businesses. It also
issues operating licenses to insurers and agents, based on their ability to meet
the state's requirements for conduct and knowledge about insurance issues.
Your insurance company and agent work closely with your insurance department to
make sure you are getting the best and fairest possible service within the
state's guidelines. If you ever have difficulty settling a claim, work with your
agent to resolve the difficulty. However, you can also contact your state's
insurance department if you wish to know more about your options and rights as
an insurance consumer.
Return to Index
Agents are there to help you. At the most basic level, any agent
should be able to answer all of your questions about insurance, provide you a
thorough assessment of your insurance needs, and offer you a choice of insurance
products to meet those needs. Also, any insurance company should provide you
with prompt, quality service in the case of a claim. If not you file a complaint
with the NJ Department of Banking and Insurance NJDOBI.
Just as important is the level of professional confidence and personal comfort
you feel with the agent. Many people stick with the same insurance agent for
decades, even generations.
However things are improving in New Jersey
thanks to
NJPAIP.Com and Affiliates Statewide.
An important, but sometimes overlooked, factor to keep in mind is that there are
two kinds of insurance agents: those who represent only one insurance company
and those who represent more than one insurance company.
Agents offering through their agencies only the policies of one insurance
company often are referred to as "captive agents," because the company they
represent does not allow them to offer their customers competitive alternatives.
Return to Index
NJPAIP.Com�
NJFloodinsurance.Org�
NJCAIP.Org�
AssignedRiskAuto.Org Homepage
About the Author.
Being Assigned is a veteran insurance agent with 18 years of
experience helping clients in a caring, knowledgeable, professional manner.
Dwain is a regular contributor to several top insurance related websites. He
also assists insurance agents needing to get online to promote their agency or
brokerage. His design homepage is located at
Web Hosting Easy or email him at
webmaster@hostingeasy.org.
|
|
|
Finding the best coverage and
lowest prices for Automobile insurance is not that difficult to shop for. Rates
vary widely from company to company. To help make shopping, comparing rates and
saving money on your insurance easier, Assigned Risk Auto Organization provides
free auto insurance comparison rates 24 hours a day, seven days a week. Get
competitive non biased help with Receive a quote from our consumer comparison
rating service any time day or night, over the Internet. Spend a couple of
minutes answering a few questions about yourself, your driving record, vehicle
information and insurance needs. Local Assigned Risk Insurance Agents will tell
you how much their company would charge you for an annual premium for your
automobile insurance, in addition to rate comparisons from other major auto
insurers including most household name brand insurance companies in your
specific zip code.
|
|
|
-
|
|
