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These days, lawsuits seem to be getting tossed around like pies at a carnival, especially against big businesses. You don’t have to be a corporate giant to face the threat of suits and feel their sting on your wallet though. So before you find yourself facing down a bunch of irate customers in Jersey state courts with a potential hole in your coffers on the horizon, you should consider getting business insurance in NJ– specifically, liability insurance.

what you need to know about liability insurance

What it is

Business liability insurance, also called Commercial General Business Liability, protects your assets in case a lawsuit is filed against you and you end up needing to pay for damages or hospital expenses of the victims. It also covers other legal costs that you will incur, like the cost of your hiring legal defense.

Types of Liability Insurance

Aside from general liability, you can also get coverage on other more specific types of damages such as product liability and professional liability. The former deals with injuries that were caused by faults in the products that you sell while the latter deals with those dealt by any errors or failures you committed while conducting your business.


Some states have a mandatory rule that requires all businesses in their jurisdiction to acquire business liability insurance. New Jersey on the other hand, doesn’t– this shouldn’t excuse you though, because the state has a bad reputation for lawsuit abuse, so even if your business isn’t especially accident-prone, it never hurts to be prepared for anything.

Business Classifications

According to an article in Fox Business, insurers classify businesses, each of which have their own degrees of risk and thus, varying premiums:

“Each business will incur its own degree of risk, and insurance companies factor in these risks when calculating your premium. Companies may look at the number of files claimed by similar companies to gauge your industry risk. Make sure your company is accurately classified to prevent unnecessary expense.”

Lowering Premiums

Even if you belong to high-risk classes though, there are always ways for you to keep your premiums down. One such way is to hold and document efficient safety awareness programs in your enterprise and actually practice them. Aside from training your employees on safety, you can also focus on installing safety technology and gadgets.

With the help of NJ insurance providers like, you can be assured that you won’t have to face the prospects of financially-draining legal issues in the future. Nevertheless, in the long run, it still falls on you and your business to make sure that you don’t injure or harm any person in the day-to-day conduct of your enterprise.

(Source: What You Need to Know About Liability Insurance, Fox Business)