8 Types Of Commercial Insurance Coverages

There are many types of commercial insurance out there and choosing the right one for you can be difficult if you have no idea where to start. Depending on your business, you want to ensure that you have the right insurance and the right amount of coverage. This article will review some of the most common business insurance types.

Employment Practices Liability Insurance

Employment Practices Liability Insurance, commonly known as “EPLI” is a type of business insurance used to cover employers against allegations made by employees who feel their rights were violated. It will protect you against claims of discrimination, sexual harassment, wrongful termination and resulting litigation. Almost all businesses can benefit from this type of policy, but usually larger companies benefit the most. This is because larger companies have more employees hence increasing their employee-related risks. 

General Liability Insurance

General liability insurance protects you in the event of a compensation claim that could be made against your company. This type of insurance can protect you from various claims such as injuries, accidents and damages. Businesses in NJ are not legally required to have general liability insurance, but we highly recommend having it, mainly if you operate a business. 

Professional Liability Insurance

Professional liability insurance is a type of insurance policy that protects professionals and businesses against claims of negligence from customers or clients. Examples are negligence, copyright infringement, personal injury, and more. Claims covered can include damages caused by things you did and/or things you should have done.

Directors & Officers (D&O) / Management Liability Insurance

D&O and Management Liability is often seen as similar products. For this purpose, we will focus on D&O.

D&O will protect you personally as an officer or a director against some of the legal costs that may arise from a wrongful act. Lawsuits/allegations can come from employees, vendors, customers or other parties. This coverage can cover costs such as settlements, lawsuits and other costs associated with the wrongful allegations.

Commercial Auto Insurance

You will need a commercial auto policy if your business relies on vehicles to get work done. It covers vehicles that are used for business purposes. This includes cars, vans and trucks that employees operate. You will be protected from financial burdens that can come from accidents such as repairs and medical bills. 

Cyber Liability Insurance

If your business becomes the victim of a cyberattack or even a data breach, then this can be expensive, and it can also take quite some time for your business to recover. If you lose a lot of data, this can put you in the firing line from your clients too, who may be able to sue you depending on the data that has been jeopardized. With this kind of insurance, you can be protected against huge data losses or breaches.

Property Insurance

Business property insurance helps protect your company’s physical assets from unexpected events such as windstorms, fires, vandalism and thefts. Floods may be covered under a standard commercial policy (not common), but separate flood insurance may be purchased. Physical assets that could be covered include office equipment, computers, printers, furniture, fixtures and other items you use to support your daily operations.

Workers’ Compensation

If you operate a business in New Jersey, you must have workers’ compensation insurance. Workers’ comp insurance protects the employer and employee if an employee is injured on the job. This coverage can be used to pay for medical care and loss of income for the injured employee. 

Workers’ compensation can also reimburse employees that get an illness due to the work they were doing for the company. An example may be a coal miner or an employee who removes asbestos from old homes and is diagnosed with rare lung disease or cancer due to work conditions. 

Next Steps

We listed some of the most common insurance types business owners ask us about. If you are a business owner in NJ and would like one of our insurance advisors to review your current insurance portfolio, give us a call at (609) 587-8030.