Commercial Property Insurance NJ

What You Need to Know About Commercial Property Insurance in New Jersey

If you own a business in New Jersey, you should consider getting commercial property insurance. This policy covers commercial buildings and residential buildings, saving you from costly repairs, which you may frequently encounter when operating a business in the state because of the area’s susceptibility to hurricanes, floods, and blizzards.

Here is everything you need to know about commercial property insurance in NJ to protect your business. 

Commercial properties in NJ

What is Commercial Property Insurance in NJ?

Also known as business property insurance, this type of insurance is similar to New Jersey’s homeowners’ policy, except commercial property policies are designed to cover commercial buildings and lands rather than personal residences. 

It provides business owners with dwelling and personal property coverage, and additional options that insure items such as fixtures, decorations, supplies, and inventory inside the commercial building. 

However, unlike New Jersey’s homeowners’ policies, business insurance does not include general liability insurance, so you need to purchase this policy separately. 

What Does Commercial Property Insurance in NJ Cover?

A commercial property insurance policy in New Jersey usually covers most of your valuable business assets, including the physical building and its content. The following are what a typical business property insurance coverage includes: 

  • The structure (building) of your business
  • The furniture inside and out of the structure
  • Equipment, including gardening tools, computers, and more.
  • Lost inventory
  • Fencing and landscaping
  • Damage to the property of others
  • Computers
  • Exterior signs
  • Important documents

You can tailor your commercial property insurance to your New Jersey business’s specific needs, allowing you to add more options for some exposures and less for others.

Coverage Options For Commercial Property Insurance in New Jersey

Insurance for commercial property owners in NJ provides a vast range of coverages for a commercial or residential building, inventory inside the property, equipment inside or outside the building, and more. The insurance also covers losses from break-ins, vandalism, wind, fire, hurricane, and other disasters typical in NJ.

The following are some of the coverages typically included in a standard New Jersey commercial property insurance: 

Business Personal Property Insurance

It covers the property’s expenses at a specified location, such as furniture, fixtures, inventory, and other equipment. However, be aware that most commercial property insurance policies in NJ have limited coverage for items taken off the specified location.

Business Income Insurance

Also known as business interruption coverage, this option reimburses you for lost profits and fixed expenses during the period your business is closed. Business income applies when the building is getting reconstructed from damages caused by fires, storms, floods, and other natural disasters. It also covers expenses when you experience financial losses due to New Jersey civil authorities limiting customer access to your business’ location after a calamity. 

The ones mentioned above are some typical insurance coverages that the standard commercial property policies include. Below are additional coverages that you can add to ensure the optimal protection of your business. 

Flood Insurance

Like with most insurance policies, the standard commercial property policy package does not include flood coverage. Having flood insurance is crucial, especially when running a business in New Jersey since the area experiences frequent hurricanes and blizzards that usually result in heavy flooding. You can add this policy separately to protect your businesses from flood damage. 

General Liability Insurance

This option is a must-have for business owners. It protects both your commercial and residential building from lawsuit or liability charges when a third party experiences bodily injuries or property damage while on your premises. 

Electronic Data Processing Insurance

If you run a tech-savvy company and possess many gadgets, including computers, you need the EDP policy. That is because most standard commercial policies have limited coverage from computer networks, and having EDP covers your expenses from uninsured scenarios, like power surges and virus attacks. 

Although most businesses settle for the standard commercial property policy, every establishment requires different coverage options. Hiring an insurance specialist from a reputable insurance agency can help you choose the insurance policy and range of coverage that is best for your business.

How Much Does Commercial Property Insurance Cost in NJ?

Determining the price for a business property insurance depends on the value of all your business assets, including the building. However, other factors influence the costs of this policy.

The following factors include: 

  • Location

If your commercial or residential real estate location is near coastlines or beaches, you will likely have higher insurance rates because the area is prone to storms and other natural disasters. 

  • Industry

The niche of your company plays a role in the pricing of your commercial policy. For instance, a realtor’s office carries fewer risks than a large fast-food chain or a auto repair shop. The lesser the risks are, the cheaper the insurance rate is. 

  • Construction

If your building uses top-quality materials, fireproof materials, upgraded electrical wiring, plumbing, and HVAC (Heating, Ventilation, Air Conditioning), your insurance rates would be higher than average.

Although the costs for a commercial policy in NJ vary per insurance agency, you can get commercial property insurance for as low as $37 per month

One of the best ways to lower the price of your premium is to shop around and compare policy prices. Also, it’s always a good idea to buy policy bundles such as a business owners policy which includes general liability and commercial property insurance. Another good way to save money on your new jersey commercial property insurance is to pay in advance.

Who Needs Commercial Property Insurance in NJ?

You will only need commercial insurance if you own a commercial property in New Jersey. For instance, if a shop leases or rents space in NJ, then you will not need this type of insurance. Businesses that own the buildings of these shops are the ones that need this insurance coverage to protect them from damages and third-party injuries.

New Jersey businesses that rent space or buildings can still benefit from the business property insurance, covering expenses for their supplies and inventory. These policies are significantly cheaper than insurance that provides coverage for a building.

What Doesn’t Commercial Property Insurance in NJ Cover?

There are some situations that are excluded from coverage when it comes to commercial property insurance, including:

  • Floods
  • Earthquakes
  • Sinkholes

Confused about commercial property insurance in New Jersey, or need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!

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New Jersey Facts

New Jersey is a northeastern U.S. state with some 130 miles of Atlantic coast and is home to 50 resort cities and towns including some of the nations most famous, Asbury Park, Wildwood, Atlantic City, Seaside Heights, Cape May. Making New Jersey a great place for real estate investments. It’s also home to one of most trafficked highways in the Garden State Highway and the New Jersey Turnpike.