New Jersey Business Umbrella Insurance
And how to find a local expert
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
In New Jersey, your business needs all the protection it can get. Avoiding losses that could put you under financially should be top on your list, and getting assistance while navigating your business umbrella insurance can be done with a trusted adviser.
An independent insurance agent has access to several carriers, giving you options on coverage and premium. They do the shopping for you at no cost. Connect with a local expert to get quotes.
What Does Commercial Umbrella Insurance Cover?
Commercial umbrella insurance will provide coverage for several items. Perhaps the most important is defense and settlement costs from a covered loss. When you have New Jersey commercial umbrella coverage, you will have additional limits of protection for your business. Take a look at some things commercial umbrella insurance can provide coverage for.
- A lawsuit arising out of slander
- A lawsuit arising out of libel
- A lawsuit arising out of defamation of character
- A lawsuit arising out of bodily injury
If you have adequate underlying business insurance, a commercial umbrella policy can provide additional coverages. It can help you settle a claim with the other party. This policy will come into play when you have exhausted your underlying limits.
Commercial Umbrella Insurance Quotes and Average Cost
Your New Jersey commercial umbrella insurance will differ from anyone else's. There are some irregularities when it comes to how much commercial umbrella insurance costs. This is because not all businesses are the same, therefore the pricing will be tailored.
- Commercial umbrella insurance average: $1,000 annually with a $1,000,000 limit of protection
While some businesses are on the high end of premiums in the $2,000's, others are only in the $200's. It will all come down to how risky your operation is and the type of coverage you select. Commercial umbrella limits start at $1,000,000 and go up depending on your assets and risk. To get exact pricing, obtain quotes from a professional.
Commercial General Liability Insurance vs. Umbrella Policy
If you own a business in New Jersey, you likely have general liability insurance. This serves as your primary business policy and is your first line of defense. Commercial umbrella insurance kicks in after.
How they work together
- General liability insurance: This pays for a lawsuit arising out of bodily injury, property damage, libel or slander.
- Commercial umbrella insurance: This pays for a lawsuit arising out of bodily injury, property damage, libel or slander. This is a continuation of liability coverage when a larger claim occurs.
These two come one after the other. Your general liability policy is the first coverage to get accessed in a loss. When those limits have been exhausted due to a larger claim, commercial umbrella insurance will apply.
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Commercial Umbrella Insurance for Rental Properties
If you own rental properties in New Jersey, you may have coverage under your commercial umbrella policy. First, you'll need to have an underlying landlord policy in place for each location. Second, you need to have each property listed on your commercial umbrella policy.
Once you've done that, you may have to provide proof of coverage to each carrier. Normally, the commercial umbrella company will have to verify underlying coverages. This can be quickly done by sending your declarations page or certificate of insurance to the carrier.
Stand-Alone Commercial Umbrella Insurance
In 2019, New Jersey had $13,470,081,000 in commercial insurance claims paid. Some of those losses needed additional liability. A stand-alone commercial umbrella policy in New Jersey is not typical. In fact, it will be hard to find one. Carriers like all eggs in one basket, because it helps them keep a better grasp on a claim when one occurs.
Most companies require that all business policies be under one roof. This is to keep all the moving parts of a loss in one area. When a large claim happens that requires your commercial umbrella insurance to kick in, it can get messy.
How to Connect with an Independent Agent in New Jersey
When you're searching for commercial umbrella insurance in New Jersey, a local adviser can help. Business insurance can be confusing if you don't know what you're doing. That's precisely why they have licensed professionals that know how to get proper protection.
An independent insurance agent has access to multiple carriers, giving you options. When you need the best price and coverage in town, consult with an expert. Connect with an independent agent on TrustedChoice.com to get started.